Indian Financial Authority Considers Bitcoin Tax Law
December 30, 2020 11:52 am
India’s finance ministry as planned for the enactment of Bitcoin (BTC) tax laws in the country. The Times of India reported that the ministry’s Central Economic Intelligence Bureau, or CEIB, recently submitted a draft document that suggests levying an 18% goods and services tax on Bitcoin trading.
CEIB officials are aware of the estimated Bitcoin transaction volume in India at over $5.4 billion. Therefore, the proposed 18% tax could see the government earning about $970 million from crypto taxation. Tanvi Ratna, CEO of Indian crypto policy advisory firm Policy 4.0, tweeted:
In 2011, India’s finance ministry confirmed that tax evasion on illegal sources of income was a criminal offense. At the time, the government was reportedly moving toward reclassifying all forms of tax evasion as criminal offenses.
On August 4, 2020, as per the report, from the Indian news website Moneycontrol, authorities in India are initiating preparations to pass a law banning cryptocurrency trading. The site quoted an anonymous official as stating that consultations between the Ministry of Electronics and Information Technology, the Ministry of Law and Justice, and the Reserve Bank of India had begun regarding the framework of such a law.
The official stated:
“We are working on it. After inter-ministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we are hoping to get it ratified”