[2014-1-3] Income Tax Department Wants To Tax Bitcoin Miners In India

[spndr7]

Income Tax Department Wants To Tax Bitcoin Miners In India

Income Tax department in India is looking at how they can impose tax on Bitcoin miners in India in the long run. However, they will not start this until RBI gives a clean chit to the coin which it had warned against recently.

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[bryant.coleman]

I am worried. Income tax in India is quite steep. The topmost bracket (> $45,000 p.y) pays around 37% of the income as tax.

I don't know how they will calculate the income from mining. The profit margin for Bitcoin mining is like -700% or so.

[LiteCoinGuy]

That said, it is good that IRS is genuinely trying to understand how the system works and how they can be part of it instead of clamping down its operations out right. Hopefully their feedback on the ecosystem might soften ED’s and RBI’s stance on Virtual Currencies.

[nastybit]

I think this is a first, I never seen a tax on miners mentioned anywhere before.
India, India... weren't you out from bitcoin already?

[pgbit]

I think this is a first, I never seen a tax on miners mentioned anywhere before.
India, India... weren't you out from bitcoin already?

Ban bitcoin, then tax bitcoin mining. Genius!

[bryant.coleman]

Talked with one of my Indian friends half an hour ago. He is  claiming that the authorities want to ban Bitcoin transactions, as they fear that the tax revenue can go down! He claims that the authorities have already got some solid proof that large amounts of money is being moved from foreign countries to India, using BTC transactions. What a stupid argument? They are already creating a list of people who are likely to have BTCs in their wallets. Let's wait and see what they are going to do.

[laowai80]

Let's wait and see what they are going to do.

After they created a list of BTC users:

[bryant.coleman]

After they created a list of BTC users:

Lol... Nope, they won't do that. No one is going to kill the goose which lays the golden eggs. 

Bitcoin users represent a new source for tax money. And the Indian tax authorities will make the maximum use out of them, before terminating them all together.

[lumierre]

They should tax Ragnarok online zeny and world of warcraft gold too.

[Anddos]

They need to work with isps obivously

[TraderTimm]

India is piss-scared that people will use Bitcoin to circumvent their capital controls. They're already crapping bricks about people smuggling gold into the country, and the last thing the rupee needs is a bunch of people running Bitcoin nodes so they can easily convert and shuttle wealth out of the nation.

This isn't about tax primarily, its just the ruse they're using to collect as much information as possible, and as usual the spineless companies located in this region are bending over backwards, thinking they'll get some kind of ruling/reward from it. Its just the regulation blood-suckers getting attached, if they allow it at all.

When someone in the government says they're going to help you, that's when you run like hell.

[bitbouillion]

Once it is taxed it is legal, that's actually very good news.

[marcus_of_augustus]

Lol ... income tax in India is a national past-time, and there is an army of smart programmer/engineers in bangalore just waiting to take the game to a whole new level ... good luck with this one bureaucrats ... meet your nemesis.

[teukon]

Dear India,

You silly sausage.   It's "ban or tax" not "ban and tax".

Warm regards,
teukon

[nastybit]

Talked with one of my Indian friends half an hour ago. He is  claiming that the authorities want to ban Bitcoin transactions, as they fear that the tax revenue can go down! He claims that the authorities have already got some solid proof that large amounts of money is being moved from foreign countries to India, using BTC transactions. What a stupid argument? They are already creating a list of people who are likely to have BTCs in their wallets. Let's wait and see what they are going to do.

Is there a reward for reporting people? ROFL
Politicians must be really stupid over there if they think they can ban bitcoin