The Government of India estimates the promise of introducing tax at the rate of 18% for Bitcoin trading in the country.
At the present time, the central government is considering a proposal for the introduction of tax on goods and services on transactions with Bitcoin, worth up to 40 million rupees in total (or about $5.4 million).
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 second place in Asia in trading Bitcoins.
According to Paxful, only in 2020 Bitcoin trading in India reached the total amount of $74,964,217, which is 38% more than in 2019.
Such a sharp growth in the trading of the cryptocurrency came, as the Supreme court canceled the two-year ban imposed by the Reserve Bank of India (RBI) on cryptocurrency trading.
Currently, there are no clear rules in the country for regulating cryptocurrencies. Therefore, the country’s cryptocurrency industry continues to work without any obvious limitations.
