Everything You Need to Know When You Buy Bitcoin in India
NEW YORK, January 14, 2022 (Newswire.com) - iQuanti: Bitcoin is the most popular cryptocurrency to have made a massive global impact since its first step in the market. It comes with a network effect and has a high-end security layer that has helped it propel the thriving market of cryptocurrency in the Indian market. With more and more exchanges taking place each day, it is more accessible than ever. In addition, it boasts of having one of the world's largest developer ecosystems than any of its counterparts in the market.
Bitcoin's immense popularity and success may have you wondering how to buy bitcoin in India! But hold on, here are a few things you should know before buying Bitcoin in India.
Things to Know Before You Start Investing in Cryptocurrency in India
Before you opt for investments in cryptocurrency in India, there are a few things that you will have to keep in mind. If you are specifically looking to buy Bitcoin in India, there are sure some questions lingering in your mind that need to be addressed. Let's uncover some of the most common and frequently asked questions by investors in India regarding Bitcoins.
Is Bitcoin Legal In India?
The first question that comes to mind when you think of investing in cryptocurrency is - Is Bitcoin Legal in India? Investing in Bitcoin or any other cryptocurrency is perfectly legal in India. While it is not legal tender, transactions and investments are not banned or prohibited by the central authority in India. Bitcoin's decentralised nature places it outside the control of central authorities. However, this does not make it an illegal asset. The government just has not formulated laws to establish a legislative framework around cryptocurrencies.
Crypto adoption has been booming in India in the last couple of years, with trading volumes increasing from $200 million to over $40 billion!
Is Bitcoin Taxable in India?
The transactions in cryptocurrencies are not covered under the income tax act, 1961; therefore, no set rules and regulations have been ascertained regarding its taxation. Also, Bitcoin or any other cryptocurrency is not accepted as legal tender money in the Indian economy by the Reserve Bank of India (RBI).
However, as per the standard law created by the Income-tax department, all the incomes generated by an individual irrespective of the sources it comes from are considered taxable, including the profits earned by Bitcoin transactions. Thus, you are liable to pay taxes to the government while holding, selling, or making transactions in Bitcoins or any other cryptocurrency. It will be taxed as your business income as per the rules of the Income Tax Department.
How To Buy And Invest In Bitcoin In India?
The growing number of cryptocurrency exchanges have made buying, selling, and investing in Bitcoins relatively simple and quick in the present market. Dealing with cryptocurrency in India has become far more efficient with the help of these exchange platforms where you can do exchanges like 'btc to inr' and many more.
Conclusion
As mentioned before, Bitcoin holds massive potential for profits in the cryptocurrency market of India. The points mentioned above are some of the key answers to the questions that are frequently asked by investors who are new and finding their niche in the crypto-asset market in the Indian economy.
Source: iQuanti, Inc.