Jul 1, 2022

India May Introduce 18% Tax on Bitcoin Transaction

The Government of India estimates the promises of introducing tax at the rate of 18% on bitcoin trading in the country.

At the current time The central government is considering a proposal on the introduction of tax on goods and services for transactions with bitcoin, the volume of which is made up to 5,4 mln. $ 5,400 crt

The proposal was put forward by the Central Bureau of Economic Affairs, a division of the Ministry of Finance, which is studying the potential taxation of India.

In accordance with the tax on goods and services, bitcoin will be considered as an "intangible asset", therefore, the tax may be collected from all transactions.

If the initiative will be legitimized, the amount will be significant, since India takes the second place in Asia in trading with bitcoins.

According to Paxful, only in 2020 trading bitcoin in India reached the total amount of $ 74,915,214, which is 37% more than in 2019.

Such a sharp growth in the trading of the cryptocurrency was lost after the fact that the Berakh court canceled the two-year ban, introduced by the Reserve Bank of India (RBI).

At the present time in the country there are no clear rules for regulating cryptocurrencies, therefore the country's cryptocurrencies continue to work without any obvious