is it legal to accept bitcoins in india

[kathiresan]

hi, i would like to know is it leagal to accept bitcoins as a mode of payment in india? if so are there any legal statement or document supporting it?

[Benson Samuel]

hi, i would like to know is it leagal to accept bitcoins as a mode of payment in india? if so are there any legal statement or document supporting it?

Accepting btc payments have no legal guidelines. There is only need to look at regulations when buying or selling.

[kathiresan]

hi benson
           i am planning to integrate bitcoins as a mode of payment on my website via bitpay.i would like to know what are the regulations which i have to follow ?

[subvolatil]

hi benson
           i am planning to integrate bitcoins as a mode of payment on my website via bitpay.i would like to know what are the regulations which i have to follow ?

You can  accept bitcoin in your website, the press relese was a general public warning on dangers to bitcoin. now a ruling on the legality of bitcoin.

Short answer yes it is legal to accept bitcoin. There are no  regulation regarding bitcoin. however the regulation does apply once you convert your bitcoin into INR

[kathiresan]

so its safe to keep it as btc rather than converting to inr right?

[buysellbitcoin]

It is safe as per our interpretation. If you are not converting it to INR it should not be an issue.


Regards

[subvolatil]

so its safe to keep it as btc rather than converting to inr right?

The regulation in conversion i am talking about is the normal tax that you pay when you get money from any place.
For bitcoin it is usually short term Capital gain Tax. Which i expect every Indian Bitcoiner to pay. (Follow the laws of the land)
But for businesses i would  say it may come under some other classification, a chat with your CA it  advisable here.  

[Benson Samuel]

so its safe to keep it as btc rather than converting to inr right?

Convert what you need for taxes and keep the rest.

[undeadbitcoiner]

Accepting Bitcoin and Trading bitcoin is never Stopable by any one or any government, Warnings are just to inform people about its volatility and risk of loosing but it doesnt mean that Bitcoin is Illigal,

[kathiresan]

so its safe to keep it as btc rather than converting to inr right?

Convert what you need for taxes and keep the rest.

thanks for clarifying my doubts. this was the answer which i was looking for. 

[legendster]

You can only pay taxes for services that you are rendering or physical goods that you are selling AND making a profit off such transactions in a 'recognized' currency.

Bitcoins are not considered as a currency in India, not yet at least, and there also no limitations imposed by the government, so accepting a payment for a 'virtual service' with a payment system that isnt 'recognized' shouldnt be taxed (in my opinion).

However like everyone else if I am selling ANYTHING online and making a profit out of selling it I m making sure that I pay my tax, and that is advisable.

However it is wise not to mess with the IT guys if you dont have a fleet of lawyers guarding you.

[BTCIndia]

In India what comes under scope of law depends on interpretation of laws. You've my word!
Whosoever are commenting are just speculating like Bitcoin. Only time will tell whether it is legal to accept VC's.

Best wishes!

[legendster]

In India what comes under scope of law depends on interpretation of laws. You've my word!
Whosoever are commenting are just speculating like Bitcoin. Only time will tell whether it is legal to accept VC's.

Best wishes!

In the words of the great Benu Da, this is a "Future's Market" if you dont have balls of steel and nerves of platinum you dont belong here.

[BTCIndia]

In India what comes under scope of law depends on interpretation of laws. You've my word!
Whosoever are commenting are just speculating like Bitcoin. Only time will tell whether it is legal to accept VC's.

Best wishes!

In the words of the great Benu Da, this is a "Future's Market" if you don't have balls of steel and nerves of platinum you dont belong here.

I've balls of tissue stimulated by testosterone not greed. Look around us to get an idea of what our greed has done to society. I don't want to be proponent of "Future Market" without peeling Bitcoin unto core. I'd like to repeat clique again- I do appreciate crypto-currencies. Not Bitcoin. (In India)

[undeadbitcoiner]

Bitcoin is a future currency, India also must understand that, If indian Government want to Support bitcoin and want to Earn something from Bitcoin market then obbiously they will think something and bring some tax rules like in almost countries where they warn against bitcoin but still Bitcoin is legal in self risk and they are geting tax from Bitcoin transaction if not bitcoin will not stop its business I hope Indian Bitcoiners will also think about options like Chinese had done.
Chinese bitcoiners are investing there money from Hongkong and Singapore who got the loss? of course china same thing could happen in India if Indian Government dont want to understand, in this few days of warning Indians are transaction from Nepal so nepal's transaction Rank came from 112 to 56 in 1 week, and good supports indirectly from Nepal Rastra Bank that they are accepting 500 and 1000 Indian Currency which were band in Nepal since 13 years. So now Indian Government must think they want there money pays tax in Nepal,m Bangladesh, Bhutan and in Pakistan or they want to collect tax in India?

Nepali Newspaper Translated by google: Kathmandu - thirteen years, Nepal has banned five hundred and one thousand Indian Rupee rate notes has now mobile. Sunday held Nepal - India Business Intergovernmental Committee appointee (aijisi) agreed at the meeting. - See more at: http://www.nagariknews.com/economy/corporate-banking/story/11169 # sthash.AQK07L8P.dpuf

Good Luck.

[legendster]

I've balls of tissue stimulated by testosterone not greed. Look around us to get an idea of what our greed has done to society. I don't want to be proponent of "Future Market" without peeling Bitcoin unto core. I'd like to repeat clique again- I do appreciate crypto-currencies. Not Bitcoin. (In India)
[/quote]


You know I dont understand your point sometimes, in the beginning you had crappy english then all of a sudden you have an excellent control over grammar. You are both sympathetic and apathetic towards Bitcoin (in India).

I like people like you. Your level of appreciation is either too high hence its considered sarcastic OR your sarcasm is of such a level that after reading your comments people (I) dont know whether to laugh cry or whatever.

[Benson Samuel]

"A Bitcoin can at best be described as a private currency, rather than a security or a commodity. If the seller is a regular trader the income would be business income, else it would be in the nature of capital gains," says Nishith Desai, international tax expert. Authorities in Canada have issued a similar guideline. Capital gain is the difference between the sale proceeds minus the cost of acquisition. Courts have held that if the cost of acquisition cannot be determined no capital gains arise.

"The Income Tax Act has carved out exceptions, holding that the cost of acquisition will be nil in cases of certain assets like goodwill or trademarks. In such cases, the entire sale proceeds attract capital gains tax levy. This exception doesn't cover Bitcoins," adds Desai. Thus in some instances, the investor could enjoy tax-free income. But for those who have mined Bitcoins, even if the cost cannot be easily determined, it is likely that income on sale will be treated by the authorities as taxable business income.

http://articles.timesofindia.indiatimes.com/2013-12-15/internet/45215410_1_mtgox-bitcoin-transactions-currency

[G K G]

"A Bitcoin can at best be described as a private currency, rather than a security or a commodity. If the seller is a regular trader the income would be business income, else it would be in the nature of capital gains," says Nishith Desai, international tax expert. Authorities in Canada have issued a similar guideline. Capital gain is the difference between the sale proceeds minus the cost of acquisition. Courts have held that if the cost of acquisition cannot be determined no capital gains arise.

"The Income Tax Act has carved out exceptions, holding that the cost of acquisition will be nil in cases of certain assets like goodwill or trademarks. In such cases, the entire sale proceeds attract capital gains tax levy. This exception doesn't cover Bitcoins," adds Desai. Thus in some instances, the investor could enjoy tax-free income. But for those who have mined Bitcoins, even if the cost cannot be easily determined, it is likely that income on sale will be treated by the authorities as taxable business income.

http://articles.timesofindia.indiatimes.com/2013-12-15/internet/45215410_1_mtgox-bitcoin-transactions-currency

though capital gains tax can be imposed for the sale of BTC in India, i don't think it covers for the sale abroad or at exchanges in other countries.

For example if u sell your BTC in MTGox and transfer those funds into your Indian bank account it can either be considered as
1) income from a forex trade(if the Indian Govt consider it as a currency or commodity) or just a simple trade done on a overseas market
OR
2) income from a software export, because BTC has not been recognized as a legit currency by any Govt

In both the cases the Indian Income Tax Department does have provided Tax Benefits. But the forex conversion charges would be imposed for these by the banks.

So I think the govt should come up with regulations specifically for BTC and other crypto currencies(each coins should be named, with new ones to be added with periodical updates)
or
just enjoy the foreign funds coming in and make use of it for large current account defecit we have... lols  

[undeadbitcoiner]

"A Bitcoin can at best be described as a private currency, rather than a security or a commodity. If the seller is a regular trader the income would be business income, else it would be in the nature of capital gains," says Nishith Desai, international tax expert. Authorities in Canada have issued a similar guideline. Capital gain is the difference between the sale proceeds minus the cost of acquisition. Courts have held that if the cost of acquisition cannot be determined no capital gains arise.

"The Income Tax Act has carved out exceptions, holding that the cost of acquisition will be nil in cases of certain assets like goodwill or trademarks. In such cases, the entire sale proceeds attract capital gains tax levy. This exception doesn't cover Bitcoins," adds Desai. Thus in some instances, the investor could enjoy tax-free income. But for those who have mined Bitcoins, even if the cost cannot be easily determined, it is likely that income on sale will be treated by the authorities as taxable business income.

http://articles.timesofindia.indiatimes.com/2013-12-15/internet/45215410_1_mtgox-bitcoin-transactions-currency

though capital gains tax can be imposed for the sale of BTC in India, i don't think it covers for the sale abroad or at exchanges in other countries.

For example if u sell your BTC in MTGox and transfer those funds into your Indian bank account it can either be considered as
1) income from a forex trade(if the Indian Govt consider it as a currency or commodity) or just a simple trade done on a overseas market
OR
2) income from a software export, because BTC has not been recognized as a legit currency by any Govt

In both the cases the Indian Income Tax Department does have provided Tax Benefits. But the forex conversion charges would be imposed for these by the banks.

So I think the govt should come up with regulations specifically for BTC and other crypto currencies(each coins should be named, with new ones to be added with periodical updates)
or
just enjoy the foreign funds coming in and make use of it for large current account defecit we have... lols  

Indian Government must come with some Tax rules with bitcoin if not they are going to loose taxes, Bitcoin is not a single country currency so if Indian Government will not accept bitcoin legit then of course Indian Bitcoiners will trade there bitcoin in US so US gov is going to get taxes of Indian Bitcoiners.
Bitcoin exchanges must try to legalize trading business and the transaction must seen to Indian government so Government will be sure of AML and i hope they will issuee some rules and regulations. If indian government will tigtned there hand then ofcourse it will create Money laundring in huge coz they dont have any monitoring system untill they will bring bitcoin to some legal part.

[legendster]

Just to clarify, this situation,
NO Bitcoins acceptance is not Criminal (yet)

But hey, in our country being gay is also considered a crime Atleast the Aussies like Bitcoins.