Now, Get Ready To Pay Tax To Government If You've Earned From Bitcoin!

CBDT chairman Sushil Chandra said that those who have earned from Bitcoin, would have to give tax. He further said that their source of income would also be asked and if they don't pay tax, action will be taken against them.

CBDT, or Central Board of Direct Taxes is the statutory body that provides inputs for policy and planning of direct taxes in India.

The government has time and again stated its tough stance against trading in Bitcoin and other cryptocurrencies. Besides rendering them as illegal tender, the government has taken initiatives to regulate earnings made by bitcoin traders.

On Monday, a report by news agency Reuters quoted finance ministry to say that government is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in "crypto assets".

Those who have earned from #Bitcoin, would have to give tax. Their source of income would also be asked and if they don't pay tax, action will be taken against them: CBDT Chief Sushil Chandra (File Pic) pic.twitter.com/q5BVDSAIY6

¡ª ANI (@ANI) 6 February 2018

A panel set by the government to look into issues relating to cryptocurrencies is expected to submit its report in the current fiscal year, ending on March 31, S C Garg, Economic Affairs Secretary, told a private news channel on Monday.

Reuters

In his budget speech on February 1, finance minister Arun Jaitley had said that the government does not consider cryptocurrencies legal tender and will take all measures to eliminate use of crypto assets in financing illegitimate activities or as part of payment system.