tld77 (OP)
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January 31, 2017, 11:18:53 PM |
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Hi, This maybe a noob question, but upon searching on the web I couldn't find satisfactory answer - I am a Canadian Citizen and one of my relatives in India asked me to buy Bitcoin in Canada and transfer to him in India, I told him that I will have to find the legal & tax aspect, so my questions are - 1). Is it legal to buy Bitcoin in Canada and send to someone in India? i.e. if it considered money laundering under FINTRAC ( http://www.loc.gov/law/help/bitcoin-survey/#canada) 2). What will be my tax liability if the person in India sends me Canadian dollars via wire transfer or other method ? Thanks in advance. |
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botany
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February 01, 2017, 12:44:24 AM |
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Hi, This maybe a noob question, but upon searching on the web I couldn't find satisfactory answer - I am a Canadian Citizen and one of my relatives in India asked me to buy Bitcoin in Canada and transfer to him in India, I told him that I will have to find the legal & tax aspect, so my questions are - 1). Is it legal to buy Bitcoin in Canada and send to someone in India? i.e. if it considered money laundering under FINTRAC ( http://www.loc.gov/law/help/bitcoin-survey/#canada) 2). What will be my tax liability if the person in India sends me Canadian dollars via wire transfer or other method ? Thanks in advance. The arbitrage opportunities which were present previously in India have dried up now, with prices converging. You should also ask your relative on whether he will be able to send you money through wire transfer or whether there are any restrictions on the amount / purpose. As far as I know, it is not easy to send money out of India. |
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tld77 (OP)
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February 01, 2017, 04:52:00 AM |
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Thanks Botany for the answer. I will confirm regarding the transfer of CA $ from India to Canada although I am also skeptical that it will not be easy. From a legal aspect, is the transaction OK?
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CryptoBry
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March 08, 2018, 10:22:19 AM |
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Hi, This maybe a noob question, but upon searching on the web I couldn't find satisfactory answer - I am a Canadian Citizen and one of my relatives in India asked me to buy Bitcoin in Canada and transfer to him in India, I told him that I will have to find the legal & tax aspect, so my questions are - 1). Is it legal to buy Bitcoin in Canada and send to someone in India? i.e. if it considered money laundering under FINTRAC ( http://www.loc.gov/law/help/bitcoin-survey/#canada) 2). What will be my tax liability if the person in India sends me Canadian dollars via wire transfer or other method ? Thanks in advance. The arbitrage opportunities which were present previously in India have dried up now, with prices converging. You should also ask your relative on whether he will be able to send you money through wire transfer or whether there are any restrictions on the amount / purpose. As far as I know, it is not easy to send money out of India. It is the sending money out of India that can be the big problem but transferring the Bitcoin to anywhere in the world that can the easier part. You can actually do this because you are dealing with friends or relatives but doing it with people who don't have a previous dealing can be a potential headache. I am not actually from India so I am not aware of the situation in there as far as moving money in and out is concerned. Here in my country we have a better financial system where money still come and free freely though there are some anti-money laundering procedures we have to follow. |
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Proton2233
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March 08, 2018, 10:42:12 AM |
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To buy bitcoins you can be anywhere. In Canada, it is also not prohibited. They do not need to be transferred to India. They may not be physically located in India. They are online and anyone can access them. It's enough to have the code to the wallet. But to exchange bitcoin in India will be problematic. I have heard that the authorities of this country have recently intensified their fight against bitcoin.
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Alone055
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March 08, 2018, 02:51:23 PM |
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It would probably be legal as long as both countries haven't banned the currency yet, IMO. If there are any regulations regarding Bitcoin in Canada or India, you will need to know them before doing such a trade.
About sending money from India to Canada, I have just checked a few Indian Bank websites where all the taxes were given for such transfers. The sender needs to pay the taxes of his country, along with the currency exchange taxes, which would surely apply even if you are sending CAD or INR, they will need to be converted to be sent to the targeted country. I'm not sure though how much or on what bases the receiver will pay the taxes for receiving the amount.
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godwyn50
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March 08, 2018, 05:45:46 PM |
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Certainly there had to be a point at which a central government within one of the countries that lead the world in terms of global economic influence and which has a vast international contribution to worldwide manufacturing, service and commercial business would take a firm and irrevocable stance on ICO and cryptocurrency entities.
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marielbeckham
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March 11, 2018, 08:18:41 AM |
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It is important to check out all the regulations regarding BTC in both countries before doing the transfer like this.
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punitjain
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March 11, 2018, 10:50:59 AM |
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yes it is possible to buy from canada and sell in india
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ritzshah
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March 11, 2018, 10:53:33 AM |
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u can buy in canada but cant sell in india because in india doing trading in bitcoin is not legal
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palle11
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March 11, 2018, 05:29:20 PM |
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Going by this that I read from the link---
Canada does not have a specific law or regulation that regulates bitcoins. In an emailed statement to The Wall Street Journal in January 2014, a Canadian official from Canada’s Department of Finance stated that Canada does not consider bitcoins to be legal tender. The official reportedly stated that “only Canadian bank notes and coins are recognized as legal tender in Canada. Bitcoin digital ‘currency’ is not legal tender in Canada.” However, the official also stated that the government of Canada would continue to “monitor developments involving virtual currencies.”
It means that Canada has not legalised bitcoin or digital currencies and I don't think they would be looking in the area of tax on it. Therefore, I believe you can buy and sell since they don't have any specified law against it yes.
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ahmad21
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March 11, 2018, 06:57:59 PM |
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You will be regulated by any foreign exchange regulation act that your country has. The foreign exchange received will be taxed as per normal regime if it is within the limits set by government. Consult a CPA in Canada to get knowledge regarding the ceilings and proper procedure as to it. But yes as I am from India I can say the person sending you such huge sums regularly will be in a bit problem as he will be liable to declare where is he sending and for what purpose is he sending funds.
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