Is crypto currency legal in India, if its legal, than which crypto currency is more reliable and which sites are the best to invest in crypto currency…
Ever heard of Google?
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Even searching on google has become a time consuming activity. Easier to ask on a forum and let someone else do all the research.
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@Abhishek87 @arjun_singh2
Ur answers are off topic, so I am flagging it…
But I am happy that u people had participated in this topic…
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Bhai, ask questions which you don’t find answers for. Don’t ask such simplistic questions when a simple google search will answer your question.
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Well @Abhishek87
I too know that we can find answers in Google…
In Google not all sites give correct answers and few are not reliable that much too,
But here in this forum, many experts who were investing in crypto currency for more than several years may be present here…
So I thought I may get an answer from an expert…
An specific and short answer from an expert…
All banks in India has sent out circulars to Account holders warning about Crypto Transactions in their account will lead to forceful closure of Accounts. Now its easy to guess whether its legal or not.
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Well i wonder, if crypto currency is not legal in India and all banks in India are warned about it,
Then why this category (bitcoins and crypto) is still exists in trading Q&A…
Little bit confused…
Just to discuss matters related to it i guess… Like the current question by the OP…
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Crypto exchanges who allowed Fiat (Rupee) to Crypto (Bitcoin, etc) have been asked to stop. But if you already hold crypto, you as an individual can do crypto to crypto. Even though exchanges have been stopped from operating, you as an individual can exchange your Rupees for crypto (A peer to peer transaction, not on the exchange).
Category is here because Crypto’s are together still $200 Billion in market cap. Many Indians have bought it as an investment/trade.
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India has a rash perspective about the cryptocurrencies as they have banned them. You need to research well before entering into this business in India. Indians are more interested in the mutual funds as far as I know. Thanks!
What if it’s illegal, then what ? You can continue to hold it at wallet and do all your investment activities in projects abroad. See my point there ? I bet they are illegal, how will you pay taxes from them ? How would be called withdraw operation to your own local bank account from your wallet ? So …
Yes, it’s illegal in India. If you really want to withdraw them you really can go with them to something like for example near country or some trip, make an account and cash it out here even paying a lot less taxes that you will be in India, what do you say ?
Revisiting this thread as there are recent developments…
So I was browsing though one of a indian TAX firm, which have a package for filling returns of PnL from Cryptocurrency trading.
First thing it hit me is Isn’t that illegal/grey area in India?
Found this:
“The Supreme Court of India passed judgment on Wednesday striking down the central bank’s April 2018 circular which bans regulated financial institutions from providing services to crypto businesses.”
However looks its still in grey area:
“Indian Government Expected to Finalize Crypto Regulatory Decision After Supreme Court Hearing… there is a draft bill that seeks to ban all cryptocurrencies except state-issued ones”
source:
Clearly as Non state (foreign) issued cypto will have a clear conflict with RBI-FEMA :
Simply put as per FEMA you can’t do trading(anything which is non delivery/have margin calls) outside India.
As theres no Indian Gov Issued bitcoins/exchange, So my view is Cypto trading was/is Illegal as per Indian Laws (FEMA).
I am not sure why no one was charged under FEMA who ever traded it? (not that I want, but from awareness perspective), was most people was are of this and did peer-to-peer cash, as i think most will be inclined to do things online via credit/debit cards which in turns violated FEMA
Comments?
How can i trade in crypto currency derivatives future option ?
I’m not aware of Derivative Option, Derivative Future trading is available in India.
It is legal to trade Crypto Futures.
Income tax Act 2022 made it clear with details of treating Trading Profit, Investment Profit, Loss Carry forward, Business Expense exemption etc. related specific to Crypto [ renamed it as Digital Virtual Asset]
The amount of income-tax calculated on the income from transfer of virtual digital asset at the rate of 30%
This amendment makes it legal in India.
Just because the income is taxable, it doesn’t make it legal.
As per income tax provisions even illegal income is taxable. If you generate income out of sale of drugs, even that income is taxable. That doesn’t mean selling drugs is legal.
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Hi Jason,
I have read your views on various post, and they are very clear and straight.
Regarding, Digital Assets, there is an ammendment
Section 115BBH is inserted by the Finance Act, 2022
I assume you have gone thru this section.
Is there any such section in Finance Act for selling drug?
If yes, then it is permitted else not permitted.
That way investing, trading in Crypto is a permitted activity for which IT Act stipulates activity gain / loss treatment.
At the same time there isn’t any IPC section against carrying out that activity, hence it is legal.
Trading in crypto is not a civil or criminal offence as per IPC.
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I am not saying whether crypto is legal or illegal.
If you ask me, I do not even know. May be you are right and it is legal.
My observation was just on this one sentence.
The mere existence of a provision for taxability does not inherently render it legal.