Bitcoin-based earnings subject to taxation, clarifies CBDT Chairman

Bitcoin-based earnings subject to taxation, clarifies CBDT Chairman

New Delhi [India]: Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra on Tuesday clarified that money earned from bitcoins would be applicable for taxation.

“Those who have earned from Bitcoins 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,” Chandra told reporters here.

Amid the rising popularity of Bitcoins, the Government has time and again, reiterated that such kind of virtual currencies will not be considered legal tender in India.

Recently, Finance Minister Arun Jaitley in his Budget speech stressed that the Government does not consider cryptocurrencies as legal tender, and will take measures to eradicate use of crytocurrencies for illegitimate activities.

“Cryptocurrency investors in India have to bear in mind that the government doesn’t consider them legal tender,” Jaitley announced in his Budget speech.

He further emphasised that the government will look to eradicate their usage for illegitimate activities, nothing about investing in them. (ANI)