Bitcoin Forum

I just read a news in cryptonews about Indian government may impose taxes on cryptocurrency. The Indian central board of indirect taxes and customs is working on a proposal to impose an 18% tax on cryptocurrencies. The proposal will be considered by the Goods and services tax (GST) council once it is finalized. According to the proposal purchase or sale of cryptocurrencies should be considered as supply of goods and those facilitating like supply, transfer, storage, accounting, among others, will be treated as services.
Whats your reaction would be if govt impose taxes on using cryptocurrencies ?

How are they planning on doing that exactly? I can understand the tax attached to a centralised exchange like coinbase (or whatever is the equivalent in india) where you have to input your name and info. But for general transactions it would be very difficult, if not impossible, to impose such a tax because of the anonymity of the blockchain. I doubt they will be successful.

Thats good and bad both at the same time.

Good in sense that India is actually (indirectly) considering or finalising the crypto currencies as legal tender and thus Indian people will be able to trade, store or make purchase of these currencies with full confidence. I mean that is really good news for the India and thus it makes me think that Bitcoin will be invested more from the India side.

Bad side is that 18% is huge money. And thus earner has to earn big chunk of it to cover the charges of 18% thus keeping his goal satisfied, but worth it.

I think it is the use of crypto for the benefit of the country, because perhaps the concern of any country whose society is active in crypto is not profitable for the country so they arrange it in taxes, I think it would be advantageous also disadvantageous.

What you said is correct but it is very good news as now the Indian users can legally do trading in cryptocurrency and business peoples can now accept bitcoin as their payment option and they can charge that 18% as tax to customers. So i think that wont be much negative affect but it will be more positive as now bank person cannot close the accounts of users who are dealing in bitcoin.

It has applied to the cryptocurrency right now. If you are seeing the latest news about that and indian government imposed cryptocurrency the tex which around 18%.

Here's my thought about that as long as it will make the adoption will become easier in the india and it's fine. Because crypto can be considered as a legal in the india and the the government imposed the tax.

The tax can be made if the crypto is equated to securities. Fortunately, a draft law is coming out in Russia, which says that crypto will not be equated with securities. And this is right and very good

Taxing cryptocurrencies is actually a good thing, which means that the Indian government will either recognize cryptocurrencies or they will not impose taxes on things that they do not approve of.
You can look at the countries that are taxing crypto. Most of them are friendly to crypto.

I think this is normal for poor countries, and eventually it will enter rich countries, crypto currency will be accepted as monetary, and accordingly the state will pay taxes on purchases and sales!

I cant understand this step of indian government because one side they said before 2 months back that people can not buy sell bitcoin from their bank accounts mean they banned on bitcoin after 3 month and in this 3 month people and the local exchanges have to settle their bitcoin position. Now the statement comes that they are willing to take tax @18% on crypto trading, so how can this possible if any thing banned and you will charge tax on it. Other side if this is true that mean indian government preparing to legalize crypto with regulation and charging tax and this is really should be good news for indian crypto investor that they will trade in crypto from their local exchanges.

If they are taxing bitcoin, then it means that they are recognizing it as a legal thing. I think that is a good development for bitcoin and other cryptocurrency. Though that is bad for the earners because their income will be lessen and the government can increase that tax any time they want.

Means crypto advanced rapidly and well in India, This is not a problem for the Indians if the income earned a big hit, many ICO comes from India naturally if the government of India wants to impose a tax for users of crypto in the country.

It is always possible not to pay taxes even if it is fiat money, with cryptocurrencies it is much more possible but if governments impose tax on cryptocurrencies, it will work but not efficient much.

Providing tax on crypto currency can be good thing because people who have trust issues with crypto, they might get motivated and inspired by the laws. This may create a legal imposement on crypto currency.

I don't think the Indian government has the ability to supervise cryptocurrencies. In the online world, supervision is a needle in a haystack. So I think this is impossible. And India’s currency has no international status at all. So it is impossible. Even if it is, it must wait until other countries do it.

I think imposing taxes are better than banning. And directly or indirectly this news shows that India is legalising bitcoin. Hope that the amount will be reasonable enough for the investors. Lets hope for the best.

Taxes of 18%, are they kidding? It's crazy, the Indian government is too imposing their will on crypto.
I guess it's not just myself that I disagree, but all crypto users in India disagree about this.

I think this is an impossible fact for existing currencies. Unless the newly developed currency is government-led. Otherwise, even supervision will not be possible. How to tax? This is not a stock transaction. This is a cryptocurrency! Essentially different! They are not products of an era at all. The greatness of cryptocurrency lies in encryption! Has been completely privatized. Traditional currency can be different. Although in your card. But in fact, you only have the right to use. You are not the real master. Because his value depends on the government's quantitative easing. In today's global economic downturn. Many governments have super funds. Quantitative easing policy will devalue the funds in the card. Do you say that cryptocurrencies will be taxed? impossible!

The only way is to intercept transfer from Crypto-FIAT exchange. I mean, as long as you transfer money between wallets, how can they get you?

well the Indian government tried so hard to ban cryptocurrencies and prevent or at least limit the number of people who invest in bitcoin but all their attempts failed miserably and they ended up with a lot of angry people and a lot of petitions against this decision of the government so they had to choose an alternative route of adding taxes to it. now they are trying to make it harder for people to invest in bitcoin by asking them to pay high taxes. i say this will also fail and Indians will continue to invest in bitcoin even more than before ...

18% tax on cryptocurrencies really would be alot man, it's good that they are accepts cryptocurrencies but the main thing is 18% tax will be alot to pay

I think they will be successful. Already many country has imposed tax on exchanges on cryptocurrency. But the threat to this is, the central government will get all the information about you, without even letting you know.

Paying tax means, you money is legal. In the event that they are burdening bitcoin, at that point it implies that they are remembering it as a legitimate thing. I imagine that is a decent improvement for bitcoin and other digital money. Despite the fact that that is terrible for the workers in light of the fact that their wage will be diminish and the administration can build that duty whenever they need.

If the Indians decide to use the services of foreign crypto-exchange exchanges, such transactions will be treated as import of services and subject to an integrated tax on goods and services (IGST).