With the recent influx of Bitcoin and other cryptocurrencies, many Indians are trying to figure out is cryptocurrency legal in India. This is a good question because cryptocurrencies are a new industry that has been growing at an incredible pace in the last year. As such, people are naturally looking for ways to get in on the action. However, it is not clear what the government’s plans are. In the short term, it’s possible that the government will not make crypto activity illegal in India.
The current bill doesn’t seem likely to ban cryptocurrencies in India, but the Indian government is pursuing a plan that would regulate cryptocurrency use in the country. This plan would also create a framework for an official digital currency issued by the RBI, as well as promote the underlying technology and trading of cryptocurrencies. It recognizes the grey area of cryptocurrency laws and proposes banning the use of private cryptocurrencies. The ban will apply to all kinds of cryptocurrencies, including those issued by non-government entities.
In terms of taxation, cryptocurrency transactions in India would be subject to both direct and indirect taxes. For example, if a person were to buy a cryptocurrency through a website, they would be subject to direct and indirect taxes. However, if someone sold a cryptocurrency in India, they would be subject to the income tax laws of the country. In addition, the government could regulate cryptocurrency trading as an investment, a commodity, or a capital asset.
