Since the world saw the whopping 1500 per cent upsurge in the value of Bitcoin in less than a year, it automatically suggests that cryptocurrency has become the top choice for many investors. As in many countries, millennials anxiously talk about tax-free crypto countries and taxation laws of their countries, these millennials, just like you and me, are also Bitcoin or crypto investors and HODLers. Hence, legal loopholes around the most popular cryptocurrency has been of prime importance for tax authorities. Even though Bitcoins are not specifically mentioned in the income tax act, Bitcoins are assets which are usually owned so holder can gain from an increase in its value. In that sense, they acquire the definition of capital gains. Which is a wide definition as per the Income Tax Act. Since, One needs to pay tax on profits made from investing in Bitcoin. One should declare the income while filing taxes.
The issue of digital currency taxation is one of the major obstacles to its popularization. Bit similar to gold, want to tax only for real currency transactions tax.
