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Old 19th March 2021, 06:50 AM
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Re: India to propose a law banning Cryptocurrencies

Quote:
Originally Posted by bwhhisc View Post
No doubt they want a piece of the pie, and i am sure they (and all governments) are looking to protect any sales taxes revenue.
Digital currencies will cut into the credit card fees and wire transfer fees that banks and credit card providers currently enjoy as well.

Officials are confident of getting the bill enacted into law as Prime Minister Modi’s government holds a comfortable majority in parliament. If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trading, does not penalize possession.



In India, despite government threats of a ban, transaction volumes are swelling and 8 million investors now hold more than 100 billion rupees (~$1.5 billion) in crypto-investments, according to industry estimates.


Previously they passed a bill to legalize bitcoins. According to that bill, if you hold the bitcoins for less than three years, the gains are called short-term capital gains. The gains would be clubbed with taxable income and you are taxed as per your income tax bracket. If you hold the bitcoins for three years or more, the gains are long-term capital gains. You have to pay long-term capital gains tax at 20% apart from your income tax bracket, with the benefit of indexation.
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