Keywords/Tags - What is Crypto Currency, tax on crypto currency, Bitcoin
You have probably heard of Bitcoin and the spur that this Crypto currency has created over the past decade. Presently, there are about 900 of these Crypto currencies that are in circulation. Some of the most popular crypto currencies include Bitcoin, Ethereum, and Litecoin. However, if you are one of those still wondering about what is Crypto currency, then it is time to gear up.
A crypto currency is in fact as simple as its name, meaning it is an encrypted currency that cannot be touched or felt but can be utilized to make purchases with certain enterprises. In fact, leading business enterprises like Microsoft, Kohl, Expedia and Shopify accept Bitcoin. So with some of the frontrunners accepting Bitcoin, you need to know beyond what is Crypto currency, in order to remain updated.
How to Buy a crypto currency?
It is not as difficult as you think to invest in a Bitcoin, Ethereum or any other crypto currency for that matter. Although a highly risky investment, its volatile price variations definitely appear lucrative. A crypto currency can be bought through a wallet and depending on your scale of investment, you may or may not need a physical wallet.
Online Wallet
An Online Wallet is a wallet with one of the intermediaries like Zebpay and Unocoin. This wallet is where you can virtually store the crypto currencies. However, you need to check with the service provider about the types of crypto currencies that they permit. All you need to do is find the right platform and get onto it by furnishing your KYC documents.
Hardware Wallet
For hardcore investors in Crypto currencies, a Hardware Wallet is considered more versatile and secure. That’s because these devices let you store a wider range of Crypto currencies and you can then trade and swap them. Also, it is far more secure than the online wallets.
How much Do I need to invest in Bitcoin?
As on October, 2018, the price of a single Bitcoin is around 2800 US Dollars, and that sums up to around Rs.2,06,000. However, you need not buy an entire Bitcoin, rather you can invest in bits of it with smaller amounts. The same goes for all other crypto currencies as well. Some popular platforms that facilitate the purchase and sale of Bitcoin in India are Unocoin and Zebpay.
Tax on Crypto currency
If you are wondering whether or not you are required to pay tax on Crypto currencies then the answer is in affirmative. However, the percentage of taxation varies depending on whether you earn a LTCG or a STCG from it. Also remember, that since you are going to follow KYC norms while purchasing a wallet, which includes your PAN card, your income would remain open to the IT department.
Is it Legal?
Crypto currencies are not backed by any government authorities and therefore cannot be termed as legal. The acceptance or non acceptance of this currency is however subjective and dependent on whether or not a particular merchant is willing to accept it in lieu of real money. While some merchants consider it of value and recognize it as a substitute currency, others don't. Although this does not make Crypto currencies legal, neither can this concept be entirely termed illegal.
With this, depending on your interests, risk-bearing capacity and financial goals, you may decide to or not to invest in Bitcoins and other crypto currencies. However, as far as tax on Crypto Currency is concerned, you may contact us to avail our services and have your returns analyzed to make your IT Filing process as convenient as possible.
By Pooja Hegde
Keywords/Tags - What is Crypto Currency, tax on crypto currency, Bitcoin You have probably heard of Bitcoin and the spur that this Crypto currency has created over the past decade. Presently, there are about 900 of these Crypto currencies that are in circulation. Some of the most popular crypto currencies include Bitcoin, Ethereum, and Litecoin. However, if you are one of those still wondering about what is Crypto currency, then it is time to gear up. A crypto currency is in fact as simple as its name, meaning it is an encrypted currency that cannot be touched or felt but can be utilized to make purchases with certain enterprises. In fact, leading business enterprises like Microsoft, Kohl, Expedia and Shopify accept Bitcoin. So with some of the frontrunners accepting Bitcoin, you need to know beyond what is Crypto currency, in order to remain updated. How to Buy a crypto currency? It is not as difficult as you think to invest in a Bitcoin, Ethereum or any other crypto currency for that matter. Although a highly risky investment, its volatile price variations definitely appear lucrative. A crypto currency can be bought through a wallet and depending on your scale of investment, you may or may not need a physical wallet. Online Wallet An Online Wallet is a wallet with one of the intermediaries like Zebpay and Unocoin. This wallet is where you can virtually store the crypto currencies. However, you need to check with the service provider about the types of crypto currencies that they permit. All you need to do is find the right platform and get onto it by furnishing your KYC documents. Hardware Wallet For hardcore investors in Crypto currencies, a Hardware Wallet is considered more versatile and secure. That’s because these devices let you store a wider range of Crypto currencies and you can then trade and swap them. Also, it is far more secure than the online wallets. How much Do I need to invest in Bitcoin? As on October, 2018, the price of a single Bitcoin is around 2800 US Dollars, and that sums up to around Rs.2,06,000. However, you need not buy an entire Bitcoin, rather you can invest in bits of it with smaller amounts. The same goes for all other crypto currencies as well. Some popular platforms that facilitate the purchase and sale of Bitcoin in India are Unocoin and Zebpay. Tax on Crypto currency If you are wondering whether or not you are required to pay tax on Crypto currencies then the answer is in affirmative. However, the percentage of taxation varies depending on whether you earn a LTCG or a STCG from it. Also remember, that since you are going to follow KYC norms while purchasing a wallet, which includes your PAN card, your income would remain open to the IT department. Is it Legal? Crypto currencies are not backed by any government authorities and therefore cannot be termed as legal. The acceptance or non acceptance of this currency is however subjective and dependent on whether or not a particular merchant is willing to accept it in lieu of real money. While some merchants consider it of value and recognize it as a substitute currency, others don't. Although this does not make Crypto currencies legal, neither can this concept be entirely termed illegal. With this, depending on your interests, risk-bearing capacity and financial goals, you may decide to or not to invest in Bitcoins and other crypto currencies. However, as far as tax on Crypto Currency is concerned, you may contact us to avail our services and have your returns analyzed to make your IT Filing process as convenient as possible.