A case why bitcoin gains need not be taxed in India!

[cuddaloreappu]

Disclaimer: This post is only on a discussion basis and do not infer anything from this post to real life regarding bitcoin and taxes. please Pay your taxes if you realize any gains from bitcoins.


I have read that Suppose if Alice goes from India to work in Dubai, Quatar or most of foreign nation, the income earned is completely tax free in India.


This happens because you are bringing foreign currency to India and therefore helping the nation by providing foreign reserve.

Now why cant the same apply for bitcoin, if bitcoin is regarded as a currency then you are contributing to the circulation of bitcoin in the nation when you sell them..

So on this basis , can bitcoin also become tax free

[onrise]

Till what ever I have understood is that govt in starting has clearly stated that bitcoin can't be currency because if its treated as a currency it has to be controlled by govt then only it would be fair to say its currency. In btc case its not being controlled by any authority so govt cannot declare this as a currency.

But we need to wait and see what they bring in the new policy which will be out shortly.

[cryptoheadd]

I have read that Suppose if Alice goes from India to work in Dubai, Quatar or most of foreign nation, the income earned is completely tax free in India.
This happens because you are bringing foreign currency to India and therefore helping the nation by providing foreign reserve.

Yes, Income earned by an Indian resident who has been working in a foreign country is completely tax free, only if he has been working for more than 6 months. (I think)
This income will be taxed by the foreign government, and therefore, will not be taxable in

Now why cant the same apply for bitcoin, if bitcoin is regarded as a currency then you are contributing to the circulation of bitcoin in the nation when you sell them..
So on this basis , can bitcoin also become tax free

Bitcoin is NOT regarded as a currency (as of now). People disclose it as an asset/investment and have to pay Capital Gains tax, if they profit from it.

Hope this helps.

[newinbtc]

Regarding your point , Bitcoin is not Legal , its not a physical currency of any country like Us$ or au$, not all people are using this , Bitcoin is like a paper gold. everyone knows whats that
But do not disclose about it to anyone who is govt employ that you are using your bank account to buy bitcoins  , Just fill yearly returns and say you have did an invesment and got return

[cuddaloreappu]

I have read that Suppose if Alice goes from India to work in Dubai, Quatar or most of foreign nation, the income earned is completely tax free in India.
This happens because you are bringing foreign currency to India and therefore helping the nation by providing foreign reserve.

Yes, Income earned by an Indian resident who has been working in a foreign country is completely tax free, only if he has been working for more than 6 months. (I think)
This income will be taxed by the foreign government, and therefore, will not be taxable in

Now why cant the same apply for bitcoin, if bitcoin is regarded as a currency then you are contributing to the circulation of bitcoin in the nation when you sell them..
So on this basis , can bitcoin also become tax free

Bitcoin is NOT regarded as a currency (as of now). People disclose it as an asset/investment and have to pay Capital Gains tax, if they profit from it.

Hope this helps.

Yeah I get it the Double taxation avoidance treaty, but that can be only for income earned, this defeats the case

[yingyang8884]

I have read that Suppose if Alice goes from India to work in Dubai, Quatar or most of foreign nation, the income earned is completely tax free in India.
This happens because you are bringing foreign currency to India and therefore helping the nation by providing foreign reserve.

Yes, Income earned by an Indian resident who has been working in a foreign country is completely tax free, only if he has been working for more than 6 months. (I think)
This income will be taxed by the foreign government, and therefore, will not be taxable in

Now why cant the same apply for bitcoin, if bitcoin is regarded as a currency then you are contributing to the circulation of bitcoin in the nation when you sell them..
So on this basis , can bitcoin also become tax free

Bitcoin is NOT regarded as a currency (as of now). People disclose it as an asset/investment and have to pay Capital Gains tax, if they profit from it.

Hope this helps.

Again What kind of asset.
CAn I treat Bitcoin as Property- Then Short tem capital Gain till 3 yrs
Can I treat Bitcoins as Stocks - then Short term capital gains till 1 yr and then tax free.

Who decides , what kind of asset it is.

[niisarearning]

It completely make sense your quote if foreign currency is tax free i mean expatriates sending money from any country . But bitcoin is having problem with  KYC and other details if it is earned through exchanges and we have to pay tax because our pan and other bank details given for submitting income details for IT department.