There is no limit, as there is nothing in law which is prescribed. If you are doing individual to individual transaction then I would suggest that you should not deal in cash, as there will no trail or documentation or whereabouts of that person. Exchange may accept if they are taking the full record of that person but if too many cash transaction occurs then it also get under radar of authorities. So I would suggest do not deal in cash and if you intend to do then the paper back-up support should be there which confirm the source of cash from your I.T return.
Rest if you intend to understand the whole thing then you may seek an opinion.
Topic: [ANN] Do not buy or sell bitcoin in Cash==> May get in hot soup (Read 2236 times)
Mr. Ranga-: It depends on how much cash they are accepting and on what analogy they are doing their business. We would suggest that you transact from your bank account.
New India-: There are exchanges which accept cash, infact we have advised millibits (our client) to accept cash but upto a limit which should suffice the government authority that no AML activity is carried out. So that no problem occurs when government authorities tries to scrutinize the exchange. The url of the exchange is
https://millibits.in
Sindelar-: A very good, clear and positive approach trail paper should always be followed in order to comply with any authority question which may be asked in future.
Hope queries have been answered.
New India-: There are exchanges which accept cash, infact we have advised millibits (our client) to accept cash but upto a limit which should suffice the government authority that no AML activity is carried out. So that no problem occurs when government authorities tries to scrutinize the exchange. The url of the exchange is
https://millibits.in
Sindelar-: A very good, clear and positive approach trail paper should always be followed in order to comply with any authority question which may be asked in future.
Hope queries have been answered.
Is there any limit like that to accept cash for a bitcoin business ? What is that limit ? I used to know, just touching cash against Bitcoin may be like touching a thunderbolt !!!
Mr. Ranga-: It depends on how much cash they are accepting and on what analogy they are doing their business. We would suggest that you transact from your bank account.
Sindelar-: A very good, clear and positive approach trail paper should always be followed in order to comply with any authority question which may be asked in future.
Hope queries have been answered.
Sindelar-: A very good, clear and positive approach trail paper should always be followed in order to comply with any authority question which may be asked in future.
Hope queries have been answered.
I used to mine a bit but have stopped now. Just earning from signature now.
It might take years before the regulations are clarified, by which point hopefully my small collection will be worth a lot
It might take years before the regulations are clarified, by which point hopefully my small collection will be worth a lot
Early exchanges in India did but all have discontinued that practice
Good advice, just pay your tax and create a positive paper trail right from the outset
Good advice, just pay your tax and create a positive paper trail right from the outset
what abt the exchanges that facilitates this type of sale ?
Is there any exchange in India that accepts cash ? AFAIK No.
what abt the exchanges that facilitates this type of sale ?
I have been reading a lot about taxation of bitcoin earning, regulation by RBI, opening of ATM's etc. However, I would like to make people aware that buying or selling bitcoins, in cash, can really land that person in hot soup.
All the miners and bitcoin traders must be aware that buying/selling of bitcoins in hard cash can really trigger the surveillance of government authorities on their head. The buying and selling of bitcoins, both way transaction, has to be carried out through legitimate mode. Even if buying or selling of bitcoins is carried out by change of cash, then the same can get under the radar of goverment authorities. Certain sections in Prevention of Money Laundering Act are strongly worded and as per the wordings of these sections a person can get into problem with authorities if found dealing in cash. However, if the person can show the inflow or outflow of cash through means of his Income Tax Return then it will be ok.
The basic reason of concern for any government to accept bitcoin as currency is that they are concerned for money laundering activities through selling of bitcoins. The Money Laundering Act has taken a huge leap in past 5 years and there has been numerous cases in which even when funding is not for terrorist activities the government has taken action.
If the miners are selling their mined bitcoins they should accept payment through cheque or net banking and if in cash, they should reflect the same in their I.T. returns.
Lastly, there are numerous other related acts in which an exchange needs to be cautious about. I cannot write everything here but I hope this post helps majority of people of this forum.
Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252
All the miners and bitcoin traders must be aware that buying/selling of bitcoins in hard cash can really trigger the surveillance of government authorities on their head. The buying and selling of bitcoins, both way transaction, has to be carried out through legitimate mode. Even if buying or selling of bitcoins is carried out by change of cash, then the same can get under the radar of goverment authorities. Certain sections in Prevention of Money Laundering Act are strongly worded and as per the wordings of these sections a person can get into problem with authorities if found dealing in cash. However, if the person can show the inflow or outflow of cash through means of his Income Tax Return then it will be ok.
The basic reason of concern for any government to accept bitcoin as currency is that they are concerned for money laundering activities through selling of bitcoins. The Money Laundering Act has taken a huge leap in past 5 years and there has been numerous cases in which even when funding is not for terrorist activities the government has taken action.
If the miners are selling their mined bitcoins they should accept payment through cheque or net banking and if in cash, they should reflect the same in their I.T. returns.
Lastly, there are numerous other related acts in which an exchange needs to be cautious about. I cannot write everything here but I hope this post helps majority of people of this forum.
Regards
--
Kanishk Agarwal
Advocate
CriTaxCorp
Criminal-Taxation-Corporate
www.critaxcorp.com
+919971666252
+919999966252
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