India May Tax Crypto Incomes

May 25, 2018 Taxation in India

Crypto currencyNEW DELHI – Cryptocurrencies will soon be taxed in India, although the move could lead to greater acceptance and legitimacy of the technology in the country.

Media rumours swirling in India about new tax rules for cryptocurrency in India have led to a fall in the prices of most major coins.

Earlier this week, rumours rose up in the media about the possibility that the government of India will rule that cryptocurrency transactions should be taxed under GST regulations.

If the rules come into force, then the earnings arising from trades involving cryptocurrencies will all under the scope of the country’s 18 percent GST.

If the transactions take place in India, then it would be regarded as the transfer of software or some intangible good.

Conversely, if the transactions involve foreign parties, it would be considered to be treated as the import or export of goods.

It was also said that the mining, storage, exchange, or transfer of cryptocurrencies would be regarded as services, so any fees or commissioned for the service would be taxed.

Some experts hope that the clarification of the taxes surrounding cryptocurrency will lead to the legitimization of the technology in India.