People pay your Taxes

[baristor137]

do I have to pay taxes for any amount of money that enters my account n i convert into bitcoin ?,


What if I used the account for the soul purpose of converting cash to bitcoins , each time i deposit money into my account for the same it is taxable ?, that sukz.

[1714147161]

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[FanOfBtc]

Paying tax for Bitcoin transactions ? What kind of tax Income tax, vat or service tax?
Bitcoin coin is not regulated in India so I believe we need not to pay Any tax for Bitcoin transactions.

Am I thinking right ? Do we have any tax experts on board in our forum?

Thanks

[baristor137]

but he said we have to pay any tax for income above 2 lakh meaning even if some cash deposit or tpt other than income is taxable?

[Muhammed Zakir]

Paying tax for Bitcoin transactions ? What kind of tax Income tax, vat or service tax?
Bitcoin coin is not regulated in India so I believe we need not to pay Any tax for Bitcoin transactions.

Am I thinking right ? Do we have any tax experts on board in our forum?

Thanks

You will have to pay tax for the Bitcoins you own. You calculate the tax looking at the INR/BTC value. You are paying tax because Bitcoin is considered as an asset. Correct me if I am wrong!

[baristor137]

Paying tax for Bitcoin transactions ? What kind of tax Income tax, vat or service tax?
Bitcoin coin is not regulated in India so I believe we need not to pay Any tax for Bitcoin transactions.

Am I thinking right ? Do we have any tax experts on board in our forum?

Thanks

You will have to pay tax for the Bitcoins you own. You calculate the tax looking at the INR/BTC value. You are paying tax because Bitcoin is considered as an asset. Correct me if I am wrong!

What if I bought bitcoins for my friends through my account ? And I already spent them, do I still have to pay tax ? I had to use cash deposit to my account and then convert via known xchanger.

[Muhammed Zakir]

What if I bought bitcoins for my friends through my account ? And I already spent them, do I still have to pay tax ? I had to use cash deposit to my account and then convert via known xchanger.

No, you don't want to pay but your friend needs to. If he doesn't pay, you will have to pay. I didn't understand your second question. You bough Bitcoins for your friends and you used them? That means those were bough for you and if it is the case, you will have to pay the tax.

FYI:

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| Individual resident (Age below 60 Yrs.) | Resident senior citizen | Super senior citizen |       Any other person excluding      | Income Tax rates |
|   or any NRI / HUF / AOP / BOI / AJP    |                         |                      |  companies and co-operative societies |                  |
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|           Up to ₹250,000                |     Up to ₹300,000      |    Up to ₹500,000     |             Up to ₹200,000            |         NIL     |
|           ₹250,001–500,000              |     ₹300,001–500,000    |            -          |             ₹200,001–500,000          |         10%     |
|           ₹500,001–1,000,000            |     ₹500,001–1,000,000  |    ₹500,001–1,000,000 |             ₹500,001–1,000,000        |         20%     |
|           Above ₹1,000,000              |     Above ₹1,000,000    |    Above ₹1,000,000   |             Above ₹1,000,000          |         30%     |
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[polynesia]

You will have to pay tax for the Bitcoins you own. You calculate the tax looking at the INR/BTC value. You are paying tax because Bitcoin is considered as an asset. Correct me if I am wrong!

If you have bought bitcoins, you don't have to pay tax unless you sell them and realize a gain.
On the other hand, if you have earned bitcoins, you have to pay tax.

[Muhammed Zakir]

You will have to pay tax for the Bitcoins you own. You calculate the tax looking at the INR/BTC value. You are paying tax because Bitcoin is considered as an asset. Correct me if I am wrong!

If you have bought bitcoins, you don't have to pay tax unless you sell them and realize a gain.
On the other hand, if you have earned bitcoins, you have to pay tax.

Thank you for correcting. As far as I have read/understood, even if Bitcoin is bought, you will have to pay the tax because it is an asset. Can you please point me to right direction if I am wrong? Please give a reference too(if possible).

[polynesia]

Thank you for correcting. As far as I have read/understood, even if Bitcoin is bought, you will have to pay the tax because it is an asset. Can you please point me to right direction if I am wrong? Please give a reference too(if possible).

Income tax is only applicable if you make gains by buying and selling bitcoins, or if you get bitcoins by selling goods/services.
Indirect taxes like VAT may be applicable while selling bitcoins.

http://www.livemint.com/Money/3qcKrBcAMIisahVOyOygYK/Are-bitcoins-currency-or-asset.html

[Muhammed Zakir]

Thank you for correcting. As far as I have read/understood, even if Bitcoin is bought, you will have to pay the tax because it is an asset. Can you please point me to right direction if I am wrong? Please give a reference too(if possible).

Income tax is only applicable if you make gains by buying and selling bitcoins, or if you get bitcoins by selling goods/services.
Indirect taxes like VAT may be applicable while selling bitcoins.

http://www.livemint.com/Money/3qcKrBcAMIisahVOyOygYK/Are-bitcoins-currency-or-asset.html

Thank you! Much appreciated.

[baristor137]

Thanks 4 clearing abit up,

Question, I have bought a few bitcoins frm my bank account inr  and used them invest/ gamble, and I have also bought 1-2 bitcoins for my friend which I have transferred to their wallet. Is any taxable ? Also my friend did cash deposit to my account for the purchase I hope all that is not taxable.

[micky123]

Ok,


I do believe i would want to pay taxes even if it is just to stay on the right side of the law. Now my questions are as follows (some of them may be statements):

1) I don't have to pay tax when buying Bitcoins because i buy them with my salary which has already been taxed before reaching me. Is this statement correct?
2) When i sell the Bitcoin i own, i will only then need to pay my taxes on the profits. Now i bought a bit at $600 and now the price is $250, so this is a huge loss to me, however the government wouldn't care about this now, would they? As long as they get their pound of flesh they are happy!
3) Is there not a way to write off my losses against Bitcoin trading like professional stock market traders do? If yes, what proofs do i need to furnish? Will LocalBitcoins records do to prove my purchase of coins?
4) What about Bitcoin that i have earned through signature campaigns? Do they come under a different type of tax? If yes, what records do i show to prove i earned these Bitcoins?
5) I assume we need to declare the profits from Bitcoin trading as "Income from other sources" while filing my returns but then if it is treated like an asset then it is subject to Capital Gains Tax which is not normally declared under the head Income from other sources?


I would really like to pay my taxes to avoid getting into trouble with the government later on, but in the absence of clear regulations governing Bitcoin, i don't see a way forward and the RBI and the government are still very mum on Bitcoin and not willing to even take a step in fixing the confusion surrounding Bitcoin. It is so typical of the government, if they can't understand something, keep sweeping it under the rug then eventually either ban it or charge retrospective tax.

[polynesia]

1) I don't have to pay tax when buying Bitcoins because i buy them with my salary which has already been taxed before reaching me. Is this statement correct?

That is correct. No direct taxes.

2) When i sell the Bitcoin i own, i will only then need to pay my taxes on the profits.

That is correct.

3) Is there not a way to write off my losses against Bitcoin trading like professional stock market traders do? If yes, what proofs do i need to furnish? Will LocalBitcoins records do to prove my purchase of coins?

It may be possible to offset losses from Bitcoin trading against specific heads (i.e. short term capital gains against short term capital losses). I am not sure how extensive LocalBitcoin records are. Is it like a statement? Bank records (money going in / out) + Blockchain evidence + LocalBitcoin records should be enough.

4) What about Bitcoin that i have earned through signature campaigns? Do they come under a different type of tax? If yes, what records do i show to prove i earned these Bitcoins?

Income from other sources.

5) I assume we need to declare the profits from Bitcoin trading as "Income from other sources" while filing my returns but then if it is treated like an asset then it is subject to Capital Gains Tax which is not normally declared under the head Income from other sources?

I think it would come under Capital Gains unless you are a professional trader. Not sure about this.

[nayakayush2]

People will always seek to avoid paying tax whether it is a tax on income or on sales. Instead we should look at cracking down on the loopholes, seeking greater punishment for lawbreakers, and giving support and encouragement for those who do pay their taxes....... and every thing will go just fine 

[dashingriddler]

What happened to Subvolatil who started this thread? He is not seen since feb. I hope all is good with him.

[polynesia]

What happened to Subvolatil who started this thread? He is not seen since feb. I hope all is good with him.

Does anybody know him personally?
I have been around for more than a year here but really haven't met anybody in person...

[Benson Samuel]

What happened to Subvolatil who started this thread? He is not seen since feb. I hope all is good with him.

Does anybody know him personally?
I have been around for more than a year here but really haven't met anybody in person...

Yeah, he is around.. Been stuck with a bunch of other work.
Doubt he will be back for a while.. I'll ping him with this shout out.

[tech_solutions]

Hi

I have been in collecting Bitcoins from free faucet sites and collecting it in a online wallet for morethan 2 years do i also have to pay the taxes

because i am not buying or depositing amout in any site to purchase i just use free faucets and collect free sathosis and playing games through bitcoins

if in future i am having bitcoins to sell that time what i have to do to show in my income tax or i can just avoid it.

please help me out


thanks and waiting for sujestions

[Nishashah]

I would also like to know how to pay income tax for my online earnings.I also work in a Govt. Institution and my yearly income from that sums around 4.3Lac.I am paying taxes for my salary through the conventional way,but this year another income source has been added i.e my online earnings.My online earnings have exceeded now over 5 Lac.So how i am going to pay taxes for the two income sources?

[coingiant1]

What if I am using Visa card from advcash? cash withdrawn from it will not be accounted right?
Wish lawyers come into Bitcoin ecosystem to help us out.