Topic: is it legal to accept bitcoins in india - page 2. (Read 5314 times)

Correct. It is more of a moral issue right now. If you want to report all your BTC income as regular income, you might want to pay tax on it.

But since RBI has no such guideline (how to calculate tax on Bitcoin income), you might just want to report only the amount you convert to fiat.

Having that said, it would be nice to have some guidelines from RBI or income tax department on how taxable BTC is and how much tax to pay.

Sure, you can use bitcoin freely

how much tax need to pay ?

Hypothetical case - Bitcoin goes to the moon and you trade some of them for fiat. You may want documentary proof to minimize your income tax payout.

I am not sure if many people actually go about filing those incomes in their tax returns.
As its hard to know which bitcoin address is whose, it would also be hard for the government to find out unless you trade them for Fiat.

On a separate note, have you considered using the signature feature of this forum, Kanishk?
It could be useful to you. In case you change your phone number or product expertise, your old posts would still direct clients to the correct number, if you just update your signature.

One benchmark you could always use for tax aspects is - how would it work if I replace bitcoin with gold in the question.
Is it legal to buy gold with cash? - The answer is yes,

Here are some of my thoughts on this topic. I am not an expert by any stretch of imagination

http://ramblingsmemind.blogspot.in/2014/09/bitcoin-currency-or-commodity-and-how.html

Accepting bitcoins for freelancer job is not illegal, but the question how you are treating them in your tax return and want kind of documentation trail you are keeping in order to support with department queries is what matters.

Buying and selling of bitcoin is not illegal but only if buying/selling is done through reported money. One might get in problem trading in bitcoin through cash, if one day the department think of initiating action against bitcoin people. Certain aspects are to be taken into consideration.

Not to scare anyone but as a member I wanna caution people dealing in cash for buying/selling of bitcoins. Also, the one who are providing services or selling goods needs to consider certain parameters which falls upon the legal line of law.

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

Well i accept bitcoins for many freelancing jobs. Why would it be illegal?

Here is the Answer for your question: http://cis-india.org/internet-governance/bitcoin-legal-regulation-india

Just to clarify, this situation,
NO Bitcoins acceptance is not Criminal (yet)

But hey, in our country being gay is also considered a crime Atleast the Aussies like Bitcoins.

Indian Government must come with some Tax rules with bitcoin if not they are going to loose taxes, Bitcoin is not a single country currency so if Indian Government will not accept bitcoin legit then of course Indian Bitcoiners will trade there bitcoin in US so US gov is going to get taxes of Indian Bitcoiners.
Bitcoin exchanges must try to legalize trading business and the transaction must seen to Indian government so Government will be sure of AML and i hope they will issuee some rules and regulations. If indian government will tigtned there hand then ofcourse it will create Money laundring in huge coz they dont have any monitoring system untill they will bring bitcoin to some legal part.

though capital gains tax can be imposed for the sale of BTC in India, i don't think it covers for the sale abroad or at exchanges in other countries.

For example if u sell your BTC in MTGox and transfer those funds into your Indian bank account it can either be considered as
1) income from a forex trade(if the Indian Govt consider it as a currency or commodity) or just a simple trade done on a overseas market
OR
2) income from a software export, because BTC has not been recognized as a legit currency by any Govt

In both the cases the Indian Income Tax Department does have provided Tax Benefits. But the forex conversion charges would be imposed for these by the banks.

So I think the govt should come up with regulations specifically for BTC and other crypto currencies(each coins should be named, with new ones to be added with periodical updates)
or
just enjoy the foreign funds coming in and make use of it for large current account defecit we have... lols  

http://articles.timesofindia.indiatimes.com/2013-12-15/internet/45215410_1_mtgox-bitcoin-transactions-currency

I've balls of tissue stimulated by testosterone not greed. Look around us to get an idea of what our greed has done to society. I don't want to be proponent of "Future Market" without peeling Bitcoin unto core. I'd like to repeat clique again- I do appreciate crypto-currencies. Not Bitcoin. (In India)
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You know I dont understand your point sometimes, in the beginning you had crappy english then all of a sudden you have an excellent control over grammar. You are both sympathetic and apathetic towards Bitcoin (in India).

I like people like you. Your level of appreciation is either too high hence its considered sarcastic OR your sarcasm is of such a level that after reading your comments people (I) dont know whether to laugh cry or whatever.

Bitcoin is a future currency, India also must understand that, If indian Government want to Support bitcoin and want to Earn something from Bitcoin market then obbiously they will think something and bring some tax rules like in almost countries where they warn against bitcoin but still Bitcoin is legal in self risk and they are geting tax from Bitcoin transaction if not bitcoin will not stop its business I hope Indian Bitcoiners will also think about options like Chinese had done.
Chinese bitcoiners are investing there money from Hongkong and Singapore who got the loss? of course china same thing could happen in India if Indian Government dont want to understand, in this few days of warning Indians are transaction from Nepal so nepal's transaction Rank came from 112 to 56 in 1 week, and good supports indirectly from Nepal Rastra Bank that they are accepting 500 and 1000 Indian Currency which were band in Nepal since 13 years. So now Indian Government must think they want there money pays tax in Nepal,m Bangladesh, Bhutan and in Pakistan or they want to collect tax in India?

Nepali Newspaper Translated by google: Kathmandu - thirteen years, Nepal has banned five hundred and one thousand Indian Rupee rate notes has now mobile. Sunday held Nepal - India Business Intergovernmental Committee appointee (aijisi) agreed at the meeting. - See more at: http://www.nagariknews.com/economy/corporate-banking/story/11169 # sthash.AQK07L8P.dpuf

Good Luck.

I've balls of tissue stimulated by testosterone not greed. Look around us to get an idea of what our greed has done to society. I don't want to be proponent of "Future Market" without peeling Bitcoin unto core. I'd like to repeat clique again- I do appreciate crypto-currencies. Not Bitcoin. (In India)

In the words of the great Benu Da, this is a "Future's Market" if you dont have balls of steel and nerves of platinum you dont belong here.

In India what comes under scope of law depends on interpretation of laws. You've my word!
Whosoever are commenting are just speculating like Bitcoin. Only time will tell whether it is legal to accept VC's.

Best wishes!