Bitcoin Trading Hits $3.5 Billion In India as HNIs Get Hit With Tax Notices!

in #bitcoin4 years ago

Bitcoin trading is witnessing a boom in India. Infact, alt coin trading has seen an increase as well. As per the latest reports which indicate that cryptocurrency trading in India has hit an all time high of $3.5 Billion in the past 17 months.


Source

In recent times I've written about how IT department raided exchanges which was followed by tax notices to HNI investors. The trading figures were discovered after these so called aggressive surveys by the government across 9 exchanges in the country.

Some find the move to be shocking but I am not surprised by it. However, many traders that I've interacted with ever since have been unhappy over the tax notices sent to them. You can view it here!

RBI and the finance ministry of the country has issued several warnings in the past. However, they continue to allow exchanges from operating legally. These exchanges operate within the legal boundaries and are fully transparent. But, the government continues to refuse to regulate cryptocurrency, and it's unlikely we'll see that happen anytime soon.

India bankers and some policy makers seem open to blockchain technology powering these cryptocurrencies but seem to be shying away from the tokens itself. In recent times banks have been found to arm-twist exchanges. You can also read this!

IT department is having a field day sending tax notices as for these guys it's a new source of revenue. If you are a Bitcoin investor, I recommend you read my article on filing your returns here! India continues to add over 200,000 new users every month and this figure is likely double up in the year to come.

I sincerely hope the government eases it's stand on trading in cryptocurrencies and opens up the market by regulating and forming an acceptable framework!


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bitcoin still hides a lot of surprises

Taxes were always going to be an issue. People think that crypto is exempt or immune from tax and many are set for a nasty shock. Declare gains and keep records or your in for a world of hurt!

Maybe there will come a time when all the money will be in the form of crypto only and we will spend it directly to buy the goods. Then there will be no tax. I heard tokenpay, a new ico is trying to do that by opening up their own debit cards and crypto bank. I don't know, any comments?

Sir
I withdrawal today at 8 a.m(india) from poloniex on steam doller (steamit.com).
Which did not happen. I also create a support ticket, but it has no advantage.(Complete error)
What should I do.
please help me

Cryptocurrency can't be stopped especially those highly private ones.
We just have to select those we had studied and believed in. They are valuable long term.

India has a ton of underground money that the gov can't get anyways, and their currency is very inflated. Cryptocurrencies should be the least of their concern.

Ton of underground currency, inflation, large economy, India............... sounds like a ripe market for crypto currency.
Dude are you sure that your not high?

They do it on purpose to extract profits, add more to their corrupt kitties. I am waiting for the day that they just stop bullying the thriving network under democratic pressures!

Long live blockchain and crypto!

These days IT department is more vigilant to cryptocurrency exchanges and traders, due to its huge potential these days.

My friend had several cases filed against him and his only way of getting out was paying the fines.

Money that we pay to exchanges as service charges itself is too much. And after paying taxes, most trades were not worth it.

I personally think there should be a trader-friendly tax system specially for cryptocurrencies.

If the transactions have happened in the financial year then it can be shown in taxes of that year. If he is a trader he can show it as a bussiness income.

Even I believe everything happens with the visibility of Government. Some investors just panic. The exchanges also try hard to explain the investors but they are overloaded so many questions. My advice in this point of time is to diversify your holdings in some Indian exchanges as well as some foreign exchanges like Binance. When situation becomes fully supportive it can be brought back to Indian exchanges for cash out.

Yeah, Frank and I were looking into that the other day. In Canada, if you earn on Steemit and then convert it to another crypto and right away to CAD, then it's considered income. If I leave it in another crypto and that grows, it's considered capital gain. We only get taxed on capital gain once we cash it out in fiat, and from that about, we are taxed on half of it, which adds to our total revenue. It's a bit complex but we sorted a few things out for each our portfolios to make sense of it all. The important part os to keep track, like with CoinTracker and to print up your exchange history of trades and such. Then your income tax report person will take care of the rest.

This is a real potential game changer for taxing - it could get over the top. Capital gains must be tiered like they do for fiat. the thing is converting fiat to cryptocurrency has a fiat fee; then you exchange to another cryptocurreny - then another trader and blockchain fee, then converting back to fiat is another fee. Primary fiat taxing should only occur once (or at worst twice) - the rest stays crypto.

I agree. There should be no taxation for trading crypto to crypto at all. Only if traded to fiat.

Yes otherwise that would defeat the object of decentralized exchanges.

@firepower : I have a very naive question. What should a low-income student in India be careful about? Like say he/she has a steemit account and if wants to convert it to rupee, usually has to rely on indian crypto-exchanges. I would like to hear your advise. :)

Don't convert it to rupees. Exchange steem with another student. Convert other people to crypto. Never go back to fiat. That's the dream..

I don't think that is the solution unfortunately.

You do not have to worry until your income crosses above 2 lakh 50 thousand. After that show them this income as blogging income, that to if you managed to earn more 2.5 lakh in a year from steemit.

yes.. i would also like to know about it.

High time that Indians get their act together. We need to tear the traditional financial system new one

like you said @firepower

RBI and the finance ministry of the country has issued several warnings in the past. However, they continue to allow exchanges from operating legally. These exchanges operate within the legal boundaries and are fully transparent. But, the government continues to refuse to regulate cryptocurrency, and it's unlikely we'll see that happen anytime soon.

They all know what cryptocurrency is and they trade as well... crytocurrency is the best way to break poverty in any country but the heads are refusing it mainly because it will slow things down for their operations. I think an acceptance for crypto will change alot of life and also India will be filled soon with a mass number of crypto holders looking at your analysis @firepower

What effect would regulating a formal network have on the smaller alt coins? Other than the bitcoin variations and ripple?

Eventually crypto will be accepted by every government. They won’t be able to stop this revolution. Any nation that tries to block crypto will be left behind. And any nation that embrace crypto will have an increase of wealth and prosperity.

What a way to start the new year.
Up with bitcoin

India must take advantage of this to the fullest

Most Indians I meet who visit Tail Nadu have heard of Bitcoin these days... Many are ON that edge of buying.. and now there has been a dip I think many will jump on the boat..

I'm also telling all the guests I meet (mainly from Bangalore and Mumbai and International) about Steemit .. most seem quite intrigued! It SO much more interesting!

My guess on regulations is that they will be tough on investors! Modi seems to have Such amazing support for whatever he does, it blows my mind sometimes.. The addition of GST seemed to happen pretty easily from what I could see.. but lets see, maybe they will be smart and realise that if they try to take too much that people will find ways to avoid paying altogether.. EIther way it will be good for Cypto!

Why you no vote me

Like most countries, ​India is simply at a loss when it​​ comes to understanding the ways and means of cryptocurrency. After all they are government folks. Government folks don't like changing trends. It is hard to pass appropriate laws they are living in the age gone bye bye. How do they get their cut out of an industry that is designed to have no central authority?​ How does a company control it's people if it can't control their money. That's the real problem. A free people cannot​ be controlled and lied to. Technology is the geat equalizer.

Remember that it was the IRS that finally got Capone.

What do you do if they send you a tax bill and you think it's wrong? Can you appeal it?

its about to Boooooooooooooooooooooom!!

India people are huge interested in the cryptocurrency and there is definitely increase in the investment of cryptocurrency. Every ahe group is interested in the cruptocurrency and he allow himself to use the cryptocurrency.
But indian government thinks that whether cryptocurrency will disturbed the indian ecomony.

'...the government continues to refuse to regulate cryptocurrency, and it's unlikely we'll see that happen anytime soon.'

The above statement about India is not surprising as that is the general position of government around the world - all because of the earning from taxation and the protection of the capitalist system of milking the people in favour of the few rich.

Cryptocurrency has come to stay and all of that game will be over soon - it's just a matter of time.

I am always optimistic ,some days in our country, crypto currency will be the legalized tender money, this day will be our great day. You are so farsighted person friend, only because of you we Indian steemians feel secure and happy, where we come across any unhealthy situations. Thanks for sharing great post again. Resteem this most valuable information.

Have you received a notice :P ?

hi @firepower , with banks suspending the bank accounts of top exchanges in india , what could be the safe move ?
I am eagerly waiting for your thoughts on this , and also looking forward for some solutions

Very good post steem

The big problem is the government has still not put their stand on trading in cryptocurrencies​​ and that's why many investors are still waiting for government voice. Hope it will be soon announced by the Indian government.

well it is more good to hear about it and sure its increase more day by day

Dash that's quite interesting - regulation of cryptocurrencies may stifle them. Who guards the guard?

Government has no choice but to support the motion because we are in the century of crypto currency

Even if the government gets involved people from India will still find a way to get crypto, go India!

@firepower Its happening and it is sad.
India has so many tech enthusiasts like me. There are so many engineers and I see them helping other teams out of India, bring their ideas to life. But normal people here are so scared to create technology for themselves. Government is sending all negative signals.
I am a CA, working with clients who come to us to participate in this crypto frenzy. Some people don't know anything, others know, but are too scared to do anything, fearing that they will lose their money.

Government is not stopping jio from bringing its coin, Salman Khan's family launched a coin, which is nothing but a scam. No steps are taken to stop them. But common man is told to disclose whatever they have earned from bitcoin.
Why can't we have proper regulations? Why can't we promote innovation, instead of killing it...

Try Binance Exchange, its verification process is fast. It take only a few hours.
https://www.binance.com/?ref=15503970

Indian govt is in dual state of mind nowadays, neither they can legalise because they have spoken alot against it but can't stop it from trading as their commander is planning earnings from this. Jio has good hold over india, and indian govt

i honestl do not know whether to laugh or cry after seeing how our government targets cryptos and crypto investors.

i can't help but feel worried though.

Who can help me with sbd please.

India is a huge and great market!
India could definitely take over the dominant burst that China used to have. I would bet they are ahead of S.Korea one day

Politicians in India are themselves invested in this. They are not clarifying because if they do so, it becomes legal and everyone will buy bitcoin or something else. Because of this banks will go dry and given the condition the Indian banks are in who would invest in them. Also the income from interest has come down now. They are now giving only 5.5% for fixed deposits. With bitcoin people can now earn a lot just in a year.

Now the bigggies has started to get into to crypto world....with jiocoin..you might see a different stand sooner....the govt will ease the norms....govt are mostly run by these biggies...let see 👍

If the Indian crypto puts an obstacle on the money market, the economy can not have a say

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