[2017-12-14] India’s Tax Authority Wants a Chunk of Your Bitcoin Profits

[FollowSynergy]

While India’s central bank warns citizens against investing in bitcoin, the country’s central tax agency is keen on taxing transactions and investments.

A spokesperson from India’s Income Tax (IT) Department has confirmed yesterday’s ‘surveys’ of multiple bitcoin exchanges across the country, looking into investments into cryptocurrencies. As reported yesterday, the tax department reportedly visited the premises of 9 bitcoin exchanges to look into ‘alleged tax invasion’. Contrary to those claims, Reuters cites a tax department official as stating that the authority is investigating bitcoin exchanges to learn how investors are trading bitcoin on the exchanges with the intent to collect taxes.

The income tax department’s spokeswoman said:

"We are looking at collecting information about modus-operandi of bitcoin exchanges, investors, their source of investment and possibility of collecting tax."

‘The tax official declined to comment on the central bank’s concerns, saying the tax department was looking only into the tax implications,’ the report added.

Bitcoin’s meteoric gains this year have seen Indian exchanges unable to cope with new adopters and demand for the cryptocurrency despite soaring premiums for buying bitcoin through exchanges.

The ever-growing appetite among everyday investors for bitcoin comes despite the central bank’s recently (repeated) caution on investments in cryptocurrencies and, specifically, bitcoin.

https://www.cryptocoinsnews.com/indias-tax-authority-wants-chunk-bitcoin-profits/

[Guardian.P]

I think many people are interested in paying taxes that will improve the development of the country and the conditions of life. We need to competently compete in this matter. To give people the opportunity to freely use crypto currency. To interest people to pay taxes by not forcibly avoid threatening them with arrest and fines

[Slow death]

this lack of coordination between the institutions of certain governments and what the leaders of these governments speak in the press is becoming very uncomfortable, if today the person listens: "let's ban bitcoin" the morning we have another institution saying something like: "we will charge tax  ". What do they want anyway? they need to be clear and keep their words, at least it must be so that a responsible one of a certain sector of the government must act. Citizens are scared every time these governments speak in the press. for example now, someone may think that if they are going to charge tax, it means that they have no problems if they buy bitcoin or invest in a mining company, they use their hard earned money and invest in a mining company and days later they hear that the government is saying that they are going to ban bitcoin... how will that person react? probably the person is disappointed.

[chiggz]

Nothing new. This happened in the past as well. From what I understand all the wallets are maintaining PAN details. This data is used to check for any capital gains that are not being declared. The same is being done with exchanges as well I guess.

[Domenc]

Double standards of the game nothing else, central banks warns but tax authority have no issues with bitcoin. I think this country India has created too much buzz by their double standards, last month they were going to ban bitcoin and still no action. I think they should at least listen to their own departments and form proper laws for the benefit of its citizens. After all it is popularly said, " Government is by the people, for the people and of the people". If they only follow this statement we might see new country getting in their favor of Bitcoin soon.

[erikalui]

Few days back I saw the news where a minster said that bitcoins are used as the main currency on dark net web and hence they want to ban the currency or take a strict action to stop the misuse. The keep repeating the same statement again and again and coinsecure too sent an update that they are clear in terms of taxes. Don't know how much they'll charge as tax as already GST rates are 18-28%.

[1Referee]

It's not just related to India. I have seen more countries thinking of ways to take their cut of people's gains. Currently we're miles ahead of any government in terms of regulations, but at some point they will find a way to collect their taxes consistently on a yearly basis. I think that the exchanges will play an important role in this since they contain a gigantic amount of precious user centric information. That information could help governments decide what level of tax you have to pay over your holdings and gains. Coinbase has been a mild example of this, where it's pretty much a guarantee that other exchanges will follow. I am not quite sure how I personally will react to this, but I may end up taking distance from the current centralized exchanges.