bitcoin selling and buysing legal in india

[kingkedi]

hi,as far as i seen so many using bitcoins and even selling and buysing
so now was it legal?
and also when you make big amount into banks i.e when sold big amount,will bank question where money comes?
and also explain how much transaction you make per month

and i want to know more on this and some are even selling bitcoins,my question do they have any problems they faced for making such transactions please answer

[BTCIndia]

hi,as far as i seen so many using bitcoins and even selling and buysing
so now was it legal?
and also when you make big amount into banks i.e when sold big amount,will bank question where money comes?
and also explain how much transaction you make per month

and i want to know more on this and some are even selling bitcoins,my question do they have any problems they faced for making such transactions please answer

Moderator Alert!

[adv.kanishk]

hi,as far as i seen so many using bitcoins and even selling and buysing
so now was it legal?
and also when you make big amount into banks i.e when sold big amount,will bank question where money comes?
and also explain how much transaction you make per month

and i want to know more on this and some are even selling bitcoins,my question do they have any problems they faced for making such transactions please answer

There is nothing illegal about bitcoin in India. People have been asking whether it is legal but I always phrase my answer that it is not illegal in India. Now the second part of your query is what happens when huge transactions are being made by buying/selling of bitcoins and you deposit or withdraw your money from bank accounts. The answer is that in order to be safe from any foreseen prosecution, you should buy/sell bitcoins only through bank accounts and use your legitimate money. If you buy in cash and sell for getting legitimate money there would be issues and vice versa also. The safest way is buying/selling through bank transfers the modes can be trough exchanges, escrow account or even between peer to peer (Provided you are not being scammed). The authorities would try to look into bulk buying/selling of bitcoins and would definitely try n trail the mode of buying and selling bitcoins, so just be aware of that.

Rest if you have any other query you can PM me as well would be glad to answer your queries.

Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252

[Sindelar1938]

Also, please please declare all btc holding and any capital gains and pay your taxes
An early and consistent rep for integrity is key to getting the government to be supportive of the community

[kingkedi]

hello sir why government not yet recognised how we file taxes and what we need to say and also do we need to show proof

[BitCoinDream]

hello sir why government not yet recognised how we file taxes and what we need to say and also do we need to show proof

AFAIK Bitcoin is taxable in India only when u convert it to INR. If u hold your stash in Bitcoin, U r just holding a digital credit, that is not taxable in any known Indian law. If they want to tax Bitcoin, they have to tax sodexo coupon, flipkart gift voucher et all.

[polynesia]

hello sir why government not yet recognised how we file taxes and what we need to say and also do we need to show proof

AFAIK Bitcoin is taxable in India only when u convert it to INR. If u hold your stash in Bitcoin, U r just holding a digital credit, that is not taxable in any known Indian law. If they want to tax Bitcoin, they have to tax sodexo coupon, flipkart gift voucher et all.

And taxable only if you have gains on conversion, not losses. 

[adv.kanishk]

The only issue which still hovers my mind is. That in case of sale of shares within 1 year period the gain comes into shrt-term capital gain and one has to pay 15% tax on the same and the sale take place after holding of the shares over a period of 1 year then no tax on the gain amount. Similar is the case of sale of any asset the short-term period is upto 3 years. Now, the gains on the sale of bitcoin are to be considered under 1 year period or 3 year period for the purpose of taxation. My understanding is it should come under the sale of asset and any gain on sale of bitcoin purchased 3 years ago should be exempt from tax. 

However, I would repeatedly say that the sale and purchase of bitcoin should be done from accounted money and not on cash basis. For the mined bitcoins one should keep the record of the ledger receipt and you should show the same in your books. This way one would also be able to take the benefit of the amount paid for purchase of miners and the expenses for electricity.

[Fernandez]

I am still staying clear of fiat/BTC for now as its too confusing. My earnings from mining and signature can't be traced back, so I haven't declared yet. Its hardly anything to bother anybody anyway.