Cryptocurrency business: Government in turmoil, investors in high spirits

- Buying cryptocurrencies in cash violates the Income Tax Act, the Income Tax Act, the Foreign Exchange Management Act, the Black Money Act and the Anonymous Act.

Cryptocurrencies are rampant in the country and in the world today. The cryptocurrency regulation bill has been stalled by the government for the time being. The move to delay the bill is being hailed by cryptocurrency dealers as a good omen. The number of people already trading in cryptocurrencies in India has increased. This is because earlier in 2012, the SC Garg Committee had opposed the idea of ​​allowing cryptocurrency in India. However, he feels that the Indian government is taking cryptocurrency more seriously and does not want to tighten control over it. The government wants to understand the intricacies of cryptocurrency in more depth. By doing so, the rational person wants to prepare rules related to it. It is likely to plan to have full control over cryptocurrencies without banning them.

If cryptocurrency is traded, it will result in gaps in the tax revenue of the Government of India. If there are financial transactions in crypto, the government will not even know who got how much income and how to collect tax from it. Also, those who engage in activities like terrorism will be able to smuggle money easily. All of this can be risky, says chartered accountant Aniket Talati. People today want no one to know why they earn and how they spend. So instead of banking transactions they have opted to transact with cryptocurrency. Weapons, even the purchase of drugs, can be easily done with cryptocurrency. So some countries are also opposing it. The number of people holding these beliefs will increase in the future so the currency of cryptocurrency may increase. Yes, the Government of India is keen to bring a digital economy. The Government of India is also keen to use blockchain technology for this. Cryptocurrencies do not duplicate due to blockchain technology. Also, illegal traders cannot enter it. Transparency also comes due to blockchain technology. As well as effectively regulate economic transactions. Also it can be used easily. Yet this is the most risky investment as there is no government regulation. Yet the number of risk takers appears to have increased. Cryptocurrency is not a coin, it is a virtual coin that appears online. So is the most risky investment. It is likely to be washed at any time. Check dealers deal within the law.

That is why S.C. The Garg Committee may have suggested criminalizing cryptocurrencies. Yet cryptocurrency transactions in the country continue to grow. There is also an opinion that cryptocurrency cannot be an alternative to currency notes. Currency notes were preceded by gold baking. Currencies are printed according to the needs of the market so the prices of every commodity in the US are constantly rising. There is also no backing in terms of cryptocurrencies. Cryptocurrencies can rise as much as they want. More currency than that comes to the market to buy less goods. So inflation is very likely to rise. The second currency notes are supported by the central bank of each country. Even people who issue cryptocurrencies do not know enough about each currency. So cryptocurrency cannot be an alternative to government currency notes.

However, 1.5 million people in India have invested in cryptocurrencies. It is also known as a virtual currency. To make this investment, cryptocurrencies can be purchased by paying from a specific website through an online channel. His official record can also be found. Money launderers are also found to be buying cryptocurrencies from those dollars by buying them directly from someone abroad by giving them cash in India. You can buy Bitcoin, Dodgecoin and Etherium by going to the portal. This porter runs twenty-four hours. You have to go to the exchange and pay directly. After your money is transferred to their account, they get crypto in dollars. Cryptocurrencies can also be purchased in Indian Rupees. It cannot be purchased by paying in cash. There are also unofficial purchases. It can be purchased for another person by transferring money from the hawala in the same way that a parallel economy works. He is in danger of violating the Black Money Act, Anonymous Act, Income Tax Act, Foreign Exchange Management Act. Is a violation of the Incometax Act. The biggest offense could be the Anonymous Act. Yet it is also a fact that people deal in it. These deals can be done through a portal called Wazirex in India. According to Wazirex, investments in cryptocurrencies have increased from ૩ 25 million to કરોડ 500 million in a single year. These statistics are from the same web portal. There is also another portal.

The fact that the Reserve Bank of India is preparing to launch its own cryptocurrency is also a sign of this. However, the Reserve Bank is not in the mood to rush into the matter. By delaying the passage of the cryptocurrency control bill in Parliament, the Indian government has resorted to looking at oil and gas edges before coming to any definite decision. People who have started trading in cryptocurrencies have come to believe that the Indian government will no longer ban cryptocurrencies. If the government had to ban it, it would have banned SCs for two years. Garg would not have taken the initiative to set aside the committee's report. Not only the Government of India, but the governments of many countries of the world are watching cryptocurrencies. He also did not take the step of giving it official recognition.

Young people between the ages of 8 and 20 are the most active in cryptocurrency

Big companies, stock market players and young people in the age group of 8 to 20 are the most traded cryptocurrencies. People involved in information technology are more active in it. They are more active as they have knowledge of technology. Young people know that cryptocurrency is not safe. Yet they are investing the most in it. Corporates and stock market players are active in it. Because they have unaccounted income. Instead of paying taxes on it, they have become active in making even more money by investing in cryptocurrencies. The gambling mentality is intense among today's youth. That's why they're investing in cryptocurrencies like Dodgecoin and Bitcoin. The impact of Alan Musk's statement in cryptocurrency has also been appealing to young people. They are also seeing an opportunity to make money fast.

Cryptocurrency transactions can be considered taxable, subject to GST

Bitcoin is popular abroad, Dodgecoin is popular in India. Indians have invested billions of dollars in cryptocurrencies like Bitcoin, Binans, Ripple, Matix Dojecoin, Etherium. In 2016, the Reserve Bank of India (RBI) did not provide banking facilities for cryptocurrencies and tried to control transactions. But after the Supreme Court forced them to provide this facility, the Reserve Bank had to issue a circular informing the banks to provide this facility. So the trading in it is constantly increasing. Those who trade in cryptocurrencies may face problems in the future if they do not pay tax on their income. Income generated through crypto deals will also be taxable. The income tax department has not yet issued clear guidelines for it. Yet it will be considered business income. If the transactions made in crypto are considered as business, then the question will also arise whether the goods and services tax will be applicable on it or not. If it is considered as business income then it will be treated as tax according to the tax slab. Another option is to consider it a capital gain. It may also be subject to short-term or long-term capital gains tax. If it is considered as business income then it can be obtained after expenses. This is the only benefit shown in the income tax return. There will be no dispute.