A post from another thread, which I think merits a separate discussion.
Q: A person maintains an e-wallet / virtual card account online on a website hosted in a foreign country, which was initially funded by income chargeable to tax in India on which tax has not been paid. Can a declaration be made in respect of e-wallet / virtual card?
A: The e-wallet/ virtual card account is similar to a bank account where inward and outward cash movement takes place from the account. Therefore, the valuation and declaration of an e-wallet account may be made as in the case of a bank account.
On a related note, do you have to declare your bitcoin holdings in Schedule FA (Foreign Assets Declaration)?
According to a recent FAQ from IT dept, e-wallets need to be declared.
http://www.incometaxindia.gov.in/communications/circular/circular15_2015.pdf
please refer to pages 11-12
According to a recent FAQ from IT dept, e-wallets need to be declared.
http://www.incometaxindia.gov.in/communications/circular/circular15_2015.pdf
please refer to pages 11-12
Q: A person maintains an e-wallet / virtual card account online on a website hosted in a foreign country, which was initially funded by income chargeable to tax in India on which tax has not been paid. Can a declaration be made in respect of e-wallet / virtual card?
A: The e-wallet/ virtual card account is similar to a bank account where inward and outward cash movement takes place from the account. Therefore, the valuation and declaration of an e-wallet account may be made as in the case of a bank account.
So that means that now we have to maintain the record of all the wallets through which i earn free bitcoins through faucets and referral earnings. But same thing that i dont buy or sell Bitcoins, means their is no cash transactions in this wallets.i use to collect the bitcoins through faucets and spend on buying personal goods.
