2. 1. RBI has neither declared the crypto
currencies as illegal not has it accepted
these as legal tenders.
3. 2. If RBI declares Bitcoin as a currency
then any trading in it would be subject to
FEMA Regulations.
4. 3. The question whether dealing in Bitcoin
is a current account transaction or not
wholly depends on whether Bitcoin is a
‘good’ or an ‘asset.
5. 4. If it is not a good, then foreign
transactions in Bitcoin shall be treated as
capital account transactions requiring nod
from the RBI
6. 5. Bitcoins could be deemed as capital
assets for the Income-tax purpose if
purchased for the purpose of
investments.
7. 6. Income from sale of Bitcoins would be
taxable as business income if the
transactions in bitcoins are substantial &
frequent
8. 7. While as STCGs are taxable as per the
slab rates applicable to a taxpayer, LTCGs
are taxed at the flat rate of 20%.
9. 8. If Bitcoins are classified as currencies,
then no GST can be charged on its
trading.
10. 9. If Bitcoin is not considered as a
currency, any trading in Bitcoin would be
considered as a ‘Service’ under GST.
11. 10. Exchange of INR into Bitcoin will
subject to GST @ 18% on commission
amount.
12. THANK YOU
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