Taxes on Bitcoin Trading In India: A Confusing Two-Pronged Attack On Cryptocurrencies?

Must Read

New RBI Guidelines Force You To Memorise All Of Your Card Details

It's time to get your brain prepped to do some much-needed homework and commit to memory the...

Bounce Layoff: Bike Rental Startup To Pivot Into New Vertical

Bike-rental startup Bounce has laid off a massive chunk of its workforce in a bid to survive...

Zomato Beefs Up Valuation Prior To IPO In Its Latest Fundraising Round!

Before heading to the stock market with an IPO, the homegrown food delivery startup Zomato beefs up...

Be ready to pay tax on bitcoin in India! isn’t sound weird?

The Indian Government is leaving no stone unturned to make crypto-trading an almost impossible and herculean task within the country borders! But in trying to do so, it has opened up the door to too many unanswered questions!

According to the latest news, GOI is very likely to levy taxes on Bitcoin. Both income tax  (I.T.) and goods & services tax (G.S.T) would be imposed on trading and gains of bitcoin and other cryptocurrencies. This information has been revealed by a senior finance ministry official who is privy to the developments of the same.


He mentioned that bitcoins will soon be categorized as financial services which will, in turn, will attract the standard 18% GST on fee commission that is collected from this particular segment along with personal I.T. tax which is to be paid on earnings from cryptocurrencies.

Now, while this newly surfaced information hints at the fact that the Indian Government is somewhat trying to bring cryptocurrencies under a regulatory framework, it doesn’t sync up with their previously announced plan.

On January 29th, the Centre floated a bill, titled Cryptocurrency and Regulation of Official Digital Currency Bill, in the Parliament. It aims to ban all cryptocurrencies and instead facilitate the creation of a new digital currency backed by the Reserve Bank of India aka RBI.

Prior to the announcement of this bill, in March 2020, the Supreme Court, on the grounds of violating the freedom of business and profession under Article 19(1)(g) of the Constitution, lifted the ban Reserve Bank of India imposed on banks against processing transactions related to cryptocurrency in 2018.

Since then, cryptocurrency has been operating in a legal vacuum in India until now when the GOI has once again turned its attention towards this space in light of the surge in crypto-trading.


In the last few months cryptocurrencies, especially bitcoins, have seen an overwhelming rise which prompted more Indian investors to purchase the asset. After Elon Musk, CEO of Tesla Inc and SpaceX founder added #bitcoin to his Twitter bio, in a matter of seconds it led to a 15% rise in bitcoin’s value almost immediately. This spike is further fueled by Tesla’s decision to buy bitcoins worth a whopping $1.5 billion.

Tax Implications & Crypto Bill: A Confusing Two-Pronged Attack

All in all, as for the question- where does India stand on the issue of cryptocurrencies? It still remains unanswered.

Maybe the GOI wants to impose I.T and GST taxes on bitcoin and other similar currencies as a temporary measure until the crypto bill banning the trade of the same is put into action.

Doing so will ensure newbie traders wanting to get into crypto-trade are scared off easy which in turn will make way for the proposed crypto bill to be eased into implementation. But, then again, there are no concrete answers available at this moment.

Currently, several Indian crypto trading companies, based on the assumption that bitcoin and Ethereum aren’t theoretically private but public cryptocurrencies, are also speculating if they will be banned at all. Thus, one can rightly refer to this situation as a messy pickle. We will keep you updated on all future developments.


Please enter your comment!
Please enter your name here

Latest News

Reliance Aims To Launch Its Own Version Of UPI-Like Payments Network With Google And Facebook!

The mammoth tech-petroleum conglomerate Reliance aims to create its own version of UPI! According...

TikTok Coughs Up $92 Million In Fine For Harvesting User Data Of Minors!

The popular short-form video app TikTok simply can’t catch a break! Besides dealing with its botched acquisition now stuck in limbo, the...

Facebook Continues Taking A Jab At Apple With New Marketing Campaign

Even after a month of attacking and accusing Tim Cook Zuckerberg is still very much fizzle out from Apple’s major blow to...

Xiaomi Levels Up On India Manufacturing: 99% Smartphones Are Made In India

Xiaomi really is digging its heels to live up to a commitment. One of the first adopters of the...

After SMS, WhatsApp Now Becomes A Threat To Cell Calling: 1 Billion And Counting

It already buried the SMSes in the ground. Now, traditional cellular calling is next on the hit list. The number of WhatsApp...

Flipkart Quickly Learns From the Mistake Amazon Did: Setting Up A Level Playing Field For Sellers!

Unlike Amazon which allegedly implemented unethical strategies to tackles India’s FDI policy for e-commerce marketplaces, Flipkart plans to do it right!

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This