People pay your Taxes

[masakali]

There is no legal requirement to pay income taxes on Bitcoins capital gains in India, because the government has not yet passed any regulation defining bitcoin as a property or an asset.
In the USA this was regulated back in 2014 itself where BTC was declared as an asset and hence capital gain taxes chargeable to citizens holding BTC stock.

India gov' is still in denial about bitcoins and hence there is absolutely no requirement to pay capital gains from a legal perspective. Unless you wish to fill the coffers of the Gandhis and the Modis with your hard earned money 

[1715692008]

1715692008

[1715692008]

1715692008

[1715692008]

1715692008

[Roboabhishek]

How do we pay taxes on BTC and how do we show it in our accounts?

-snip-

-snip-

Yes. Age really doesn't matter in this case.
Even in the case of minors, income is clubbed with that of the guardian and income tax has to be paid.

What if someone is making it online any storing that money in bitcoin wallet. I mean cold wallet
Then why he/she will pay the taxes if not even withdrawing the bitcoins to bank account ?
I will be waiting for the answer.
Thanks 

[masakali]

How do we pay taxes on BTC and how do we show it in our accounts?

-snip-

-snip-

Yes. Age really doesn't matter in this case.
Even in the case of minors, income is clubbed with that of the guardian and income tax has to be paid.

What if someone is making it online any storing that money in bitcoin wallet. I mean cold wallet
Then why he/she will pay the taxes if not even withdrawing the bitcoins to bank account ?
I will be waiting for the answer.
Thanks 

You do not have to. If you're only having BTC online and in the form of fiat currency, there arises no question of tax.


Even if you are converting it into INR through an exchange you only need to pay service taxes and other state cess and there is no need to pay capital gain tax. This much I have had it clarified from my CA as well as an expert senior lawyer from Mumbai who is well versed in financial laws. Both of them were crystal on the fact that as long as there is no regulation in place treating bitcoin as an asset, paying capital gains is not necessary and waste of ones money.

All of this changes if and when bitcoin becomes a regulated asset, you would have to maintain strict books regarding buying and selling coins to show capital gains and also pay taxes on the arbitrage.

[Roboabhishek]

How do we pay taxes on BTC and how do we show it in our accounts?

-snip-

-snip-

-snip-

-snip-

You do not have to. If you're only having BTC online and in the form of fiat currency, there arises no question of tax.


Even if you are converting it into INR through an exchange you only need to pay service taxes and other state cess and there is no need to pay capital gain tax. This much I have had it clarified from my CA as well as an expert senior lawyer from Mumbai who is well versed in financial laws. Both of them were crystal on the fact that as long as there is no regulation in place treating bitcoin as an asset, paying capital gains is not necessary and waste of ones money.

All of this changes if and when bitcoin becomes a regulated asset, you would have to maintain strict books regarding buying and selling coins to show capital gains and also pay taxes on the arbitrage.

Thanks for the info this question was jumping in my mind from like 2 months before you told the answer.

[soyab0007]

How do we pay taxes on BTC and how do we show it in our accounts?

-snip-

-snip-

Yes. Age really doesn't matter in this case.
Even in the case of minors, income is clubbed with that of the guardian and income tax has to be paid.

What if someone is making it online any storing that money in bitcoin wallet. I mean cold wallet
Then why he/she will pay the taxes if not even withdrawing the bitcoins to bank account ?
I will be waiting for the answer.
Thanks 

You do not have to. If you're only having BTC online and in the form of fiat currency, there arises no question of tax.


Even if you are converting it into INR through an exchange you only need to pay service taxes and other state cess and there is no need to pay capital gain tax. This much I have had it clarified from my CA as well as an expert senior lawyer from Mumbai who is well versed in financial laws. Both of them were crystal on the fact that as long as there is no regulation in place treating bitcoin as an asset, paying capital gains is not necessary and waste of ones money.

All of this changes if and when bitcoin becomes a regulated asset, you would have to maintain strict books regarding buying and selling coins to show capital gains and also pay taxes on the arbitrage.

thanks, this is what I am looking for...
service tax on total fiat currency?
And % of service tax

[bitcoin.user]

Can some help me understand.
If am selling regularly on zebpay.
How do I pay tax for it?
- Do I need to service tax on the income earned.
- Do I need to file this under business income.

Would appreciate guidance, kind of stuck with this information.

[nizamcc]

Can some help me understand.
If am selling regularly on zebpay.
How do I pay tax for it?
- Do I need to service tax on the income earned.
- Do I need to file this under business income.

Would appreciate guidance, kind of stuck with this information.

As said somewhere, this comes under "income from other sources". If you are selling on zebpay, you need to have records and statements ready with you if you are ever to file returns which you will do, because you are getting INR in exchange of bitcoins, and INR is the currency that we use so when it is exchanged, I think you will need to pay taxes, but no need IMHO.

[Jessica136]

@wpx ^^ not 2 lkhs its 2.5 lakhs

[jay8291]

How is the tax applied on Bitcoin earnings is yet not clear. what do peoples think about it. Recentyl Income Tax officials visited a Bitcoin exchange to discuss about how can the tax applied to it. SO is there any tax currently on it or no ?

[Blackshadow007]

Do we have to Pay TAX as Capital Gains for BTC Earning throughout the whole financial year ? any suggestions ?

[Sahyadri]

Govt of Indian has not yet defined bitcoin.

So there can be no tax on bitcoins earned and held.

What can be taxed is profit earned from trading in or selling bitcoins in fiat currency.

As Govt of Indian has not yet defined bitcoin. It is unclear under what header this income will be considered.

One cant say for sure unless govt makes a clear statement on bitcoins

[pvaspecialist]

can i buy bitcoin from old notes ?

LOL sam1123 
I damn sure you will not find anyone that type of blind people who still don't know 500 and 1000 Rs Notes are banned.
you can try to buy bitcoin with your banned notes...lol

why should i pay taxes so that papu jan eat more and more ?

jjjack you should have to pay taxes otherwise you will caught by police and go to jail.you can not do anything because papu very strong.
if you have more than 3 lac rupee you must have to pay taxes you can not escape unless you use Swiss bank.lol 

[nizamcc]

can i buy bitcoin from old notes ?

There are users who are selling bitcoins at very high rates on localbitcoins for your old notes, but I think you will need to show some ID on localbitcoins, but they said that you don't need any proof at banks as they are taking this via cash deposits. 10-15% higher prices for bitcoins though if you want to buy through old notes.

[baristor]

I still feel bitcoin is a tax free thing.

That was the whole point of the creation of Bitcoin .

If you guys keep acting like pussies then maybe the government will start regulating it no matter what.

The thing is people need to stand up against the evil the government do.


If no one pays tax and everyone shifts to bitcoin what are they going to do ?

[Blackshadow007]

I still feel bitcoin is a tax free thing.

That was the whole point of the creation of Bitcoin .

If you guys keep acting like pussies then maybe the government will start regulating it no matter what.

The thing is people need to stand up against the evil the government do.


If no one pays tax and everyone shifts to bitcoin what are they going to do ?

So how you sure that its tax free in India ..

its still unclear to me how to pay tax for btc trades .. :/ i use personally coinsecure .. so when i file tax what income i mention ? and do i need to submit btc transaction details .. please can someone point me to a good CA who expert in this matter .. :/

[baristor]

I still feel bitcoin is a tax free thing.

That was the whole point of the creation of Bitcoin .

If you guys keep acting like pussies then maybe the government will start regulating it no matter what.

The thing is people need to stand up against the evil the government do.


If no one pays tax and everyone shifts to bitcoin what are they going to do ?

So how you sure that its tax free in India ..

its still unclear to me how to pay tax for btc trades .. :/ i use personally coinsecure .. so when i file tax what income i mention ? and do i need to submit btc transaction details .. please can someone point me to a good CA who expert in this matter .. :/

Basically you will only have a problem if you move lakhs of money in and out of your account banks and income tax will wonder whats up but it's still legal.

But they say you must pay taxes for the profit u make on buying and selling btc. It's still iffy though. As bitcoin is not a legit job or source of income.  There are so many investors for online sites and other things like paid to click who get excused from paying tax.

Only a lawyer can answer this though as far as I know it should be legal but some btc exchanges in the early days got busted for moving around alot of money ... but the cops couldnt do anything.

[nizamcc]

I still feel bitcoin is a tax free thing.

That was the whole point of the creation of Bitcoin .

If you guys keep acting like pussies then maybe the government will start regulating it no matter what.

The thing is people need to stand up against the evil the government do.


If no one pays tax and everyone shifts to bitcoin what are they going to do ?

So how you sure that its tax free in India ..

its still unclear to me how to pay tax for btc trades .. :/ i use personally coinsecure .. so when i file tax what income i mention ? and do i need to submit btc transaction details .. please can someone point me to a good CA who expert in this matter .. :/

Basically you will only have a problem if you move lakhs of money in and out of your account banks and income tax will wonder whats up but it's still legal.

But they say you must pay taxes for the profit u make on buying and selling btc. It's still iffy though. As bitcoin is not a legit job or source of income.  There are so many investors for online sites and other things like paid to click who get excused from paying tax.

Only a lawyer can answer this though as far as I know it should be legal but some btc exchanges in the early days got busted for moving around alot of money ... but the cops couldnt do anything.

Taxes are needed to be paid at any cost because in the end, you are converting your coins to a currency which is used in the country you live, so you are definitely bound to pay taxes. You will need to show statements as well as sources from where you have been gaining bitcoins, and even if it's gambling, you will need that too to be shown in your statements that you got x amount in your account through gambling.

[Blackshadow007]

I still feel bitcoin is a tax free thing.

That was the whole point of the creation of Bitcoin .

If you guys keep acting like pussies then maybe the government will start regulating it no matter what.

The thing is people need to stand up against the evil the government do.


If no one pays tax and everyone shifts to bitcoin what are they going to do ?

So how you sure that its tax free in India ..

its still unclear to me how to pay tax for btc trades .. :/ i use personally coinsecure .. so when i file tax what income i mention ? and do i need to submit btc transaction details .. please can someone point me to a good CA who expert in this matter .. :/

Basically you will only have a problem if you move lakhs of money in and out of your account banks and income tax will wonder whats up but it's still legal.

But they say you must pay taxes for the profit u make on buying and selling btc. It's still iffy though. As bitcoin is not a legit job or source of income.  There are so many investors for online sites and other things like paid to click who get excused from paying tax.

Only a lawyer can answer this though as far as I know it should be legal but some btc exchanges in the early days got busted for moving around alot of money ... but the cops couldnt do anything.

Taxes are needed to be paid at any cost because in the end, you are converting your coins to a currency which is used in the country you live, so you are definitely bound to pay taxes. You will need to show statements as well as sources from where you have been gaining bitcoins, and even if it's gambling, you will need that too to be shown in your statements that you got x amount in your account through gambling.

in that case i wonder what source i should show .. as i sell items in bitcointalk and do a bit currency exchange stuff around some forums to gain bitcoin.. any suggestion ?

[WINBC]

I don't mind paying tax.

do correct me if I'm wrong. From what I've read, I understand that we don't have to pay tax on bitcoin in India as it's not yet regulated. Once we convert btc to fiat, is when we would need to pay up.

Does the government include crypto when they say, tax payable from any source of income?


This article from coindesk regarding IRS targeting coinbase should give us an idea on what we could expect in India if btc does get regulated : http://www.coindesk.com/irs-summons-will-mean-coinbase-users/

[nizamcc]

I don't mind paying tax.

do correct me if I'm wrong. From what I've read, I understand that we don't have to pay tax on bitcoin in India as it's not yet regulated. Once we convert btc to fiat, is when we would need to pay up.

Does the government include crypto when they say, tax payable from any source of income?


This article from coindesk regarding IRS targeting coinbase should give us an idea on what we could expect in India if btc does get regulated : http://www.coindesk.com/irs-summons-will-mean-coinbase-users/

IMHO, I really think that Bitcoins actually can never get regulated by any governments based on the volatility of the markets, other currencies being exchanged are very stable compared to this and so, I don't see any facts as well as possibilities for governments in regulating Bitcoins. Yes, they can charge us taxes when our income from BTC gets converted into fiat, because it is the only thing that we will have on hands and we need to show proofs that how we earned that money.