Bitcoin gift tax india
5 stars based on
This article is bitcoin gift tax india attempt to explain these laws which the persons dealing in crypto-currency must be aware of.
Crypto-currency, especially, Bitcoin has become controversial. India is in a fix- neither giving it a legal status nor declaring it illegal. Ministry of Finance formed a committee in April to submit its report within three months whether to allow crypto-currencies to be traded in India.
The statement bitcoin gift tax india Finance Minister has further confused the nation. Of course, no government will recognize crypto-currency as legal bitcoin gift tax india. Similarly, Reserve Bank also keeps on issuing advisories periodically to desist investors dealing in crypto. After the US sub prime crises in and the fall of Lehman Bros; the trust on banking industry was shaken.
The fiat currencies of nations are of national character whereas its citizens are becoming global in stature. Instead of exchanging currencies every now and then while travelling to different countries; these global characters were long wishing a global currency.
Bitcoin fulfilled their wish being global in nature. In international transactions, banks conduit a trust between two unknown entities and charge for this trust. But what trust banks give in a transaction between father and his son living in different countries. Why do they require a bank in between. Bitcoin facilitates peer-to-peer transaction.
The circulation of Bitcoin are fixed in numbers, ie, maximum 21 million will come into circulation. Whereas the value of Bitcoin will always be increasing since its supply is fixed and demand will keep on increasing.
Thus investing in Bitcoin is beneficial in the long run than investing in bitcoin gift tax india currency. In spite of so many benefits, no government would like to declare it a legal tender, because then it will lose its status of monetary authority. Bitcoin is posing a big threat to the monetary system of the nations.
Income Bitcoin gift tax india Department is not concerned about the legality of the transaction. For purpose of Income-tax, there is no difference between legal and tainted income. Even illegal income is taxed just like any legal income. By taxing such income, the state is not taking part in the crime or condoning it, nor would become a principal or a sharer in the illegality.
He has two options available to complete this arbitrage: As a law-abiding citizen, he also pays income-tax on this profit, still a handsome gain. But FEMA comes into picture. Proceeds of remittances received in any permitted currency from outside India through normal banking channels. Hence this rout of bitcoin gift tax india is partially blocked. Even if RBI permits to deposit the sale proceeds in NRO account; whether the account holder can repatriate the funds abroad.
Remittance outside India of current income in India of the account holder like rent, dividend, pension, interest etc. Remittance up to USD one million per financial year, bitcoin gift tax india all bona fide purposes, to the satisfaction of Authorized Dealer Bank.
Again a question; bitcoin gift tax india AD Bank will consider this bitcoin gift tax india remittance for bona fide purpose in bitcoin gift tax india light of fact that government of India and RBI are against the crypto-currency. The second option to complete this arbitrage is: As per US laws, gift tax is levied on the donor. Here Foreign Contribution Regulation Act, poses hurdles. As per website of Ministry of Home Affairspurpose of FCRA is to facilitate receipt of foreign contribution for genuine purposes, without compromising national security.
Though foreign contribution received from a relative is exempt, intimation is required to be submitted to the Ministry of Home Affairs in form FC-1 if foreign contribution received in a financial year exceeds rupee one lakh. In the light of aversion towards crypto-currency by the government, how many question will be asked to recipient of Bitcoin.
Since Bitcoin was purchased in dollar from US exchange and sold in India, government may consider it foreign remittance in India. Recently, Bank of International Settlement has exhorted the member Central Banks to deal strictly with crypto-currencies as these pose danger to the basic foundation of monetary system of the world. Bitcoin will stay or not, only time will tell. For the time being, governments are confused how to regulate it. I put this article for general debate seeking suggestions — for and against crypto-currencies; and possible safeguards to be taken — which can be escalated at the appropriate forum making it easy for the government to enact regulations.
Mains Crypto-currency, especially, Bitcoin has become controversial. The concept of virtual currency was welcomed on many counts: All local payments in rupee.
Bitcoin gift tax india I put this article for general debate seeking suggestions — for and against crypto-currencies; and possible safeguards to be taken — which can be escalated at the appropriate forum making it easy for the government to enact regulations.