Kryptovalyuta and taxation

Kryptavalyuty with & # 39 appeared in the news recently because the tax authorities believe that they can be used for money laundering and tax evasion. Even the Supreme Court appointed special investigation team of black money by recommending a ban trading currency. While in China were forbidden to sell some of the largest operators in bitcoin trading, in countries such as the USA and Canada, there are laws to limit trade kryptavalyutay.

What is cryptocurrency?

Cryptocurrency, as the name implies, uses encrypted codes for the transaction. These codes are recognized by other computers on the user community. Instead of using paper money online book is updated regular accounting records. Account spisuetstsa buyer and the seller's account is credited in a currency.

How are transactions on cryptocurrency?

If the transaction initiates one user, its computer sends the public key cipher or open, which interacts with the private cipher of the person receiving the currency. If the recipient receives a transaction, the initiating computer attaches a piece of code to a block of several such encrypted code, which is known to every user in the network. Special users are called & # 39; Miners & # 39; additional code can be attached to a public unit that solves the puzzle and cryptographic greater earning cryptocurrency in this process. After a miner confirm the transaction, the record in the block can not be modified or deleted.

Eg, BitCoin can be used on mobile devices, as well as make purchases. All you need to do is to allow the receiver to scan the QR-code from an application on your smartphone or bring them face-to-face, using communications Near Field (NFC). Please note that this is very similar to regular web wallets such as PayTM or MobiQuick.

Obedient BitCoin users swear by its decentralized nature, international recognition, anonymity, transaction consistency and data security. Unlike paper currency, no central bank does not control the inflationary pressure on cryptocurrency. Ledger transactions are stored in a network Peer-to-Peer. This means that each computer chip in their computing power and database copies are stored on each node in this network. On the other hand, banks store transaction data in a central repository, which are in the hands of private persons employed by the company.

How can I use cryptocurrency for money laundering?

The very fact that the lack of control over operations with kryptovalyutay by central banks and fiscal authorities means that transactions may not always be labeled with a specific person. This means that we do not know, gets tranzaktar legitimate repository or not. The shop seems suspicious transaction, because no one can say that was taken into account for the resulting currency.

What does the Indian Act such virtual currencies?

Virtual Currency either cryptocurrency usually regarded as software and therefore refer to the goods in accordance with the Act on the sale of goods in 1930.

Being a good, indirect taxes on its sale or purchase, as well as the GST on the services provided by the miners, will be applied to them.

There is still a lot of confusion as to how much currency in India act as a currency, and RBI, which has authority over clearing and payment systems and pre-paid instruments reversed, certainly will not automatically buy and sell with the help of this medium of exchange.

Thus, any kryptovalyuty derived by a resident in India, shall be subject to the law on the management of foreign currencies in 1999 as the import of goods into the country.

India allowed to conduct trade BitCoins on special exchanges with integrated protective means for tax evasion and money laundering and compliance with Know Your Customer. These exchanges include Zebpay, Unocoin and Coinsecure.

For example, those who invest in BitCoins, may be charged for the dividends received.

Capital gains resulting from the sale of securities with virtual currency, is also subject to tax in the form of income and the subsequent filing of IT return online.

If your investments in that currency are high, you had better get help personalize the tax service. Internet platform has long facilitated the implementation of the tax.