Is Bitcoin income reported for income tax purposes

dnk

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In India and elsewhere, many people have made a lot of money using Bitcoin, and are also using the bitcoin money for making payment online for purchasing many items. Is the Bitcoin income, especially the money which has been spent online directly, added to the income tax returns of investors, or is it never reported?
Any information will be greatly appreciated
 

Connected

Member
Now THIS is a tricky question. All I can say for surety is, Cryptocurrency is looked upon as property here in the U.S. Like stocks or even real estate. If you make a profit from it through trading or selling, your profits will be taxed in the same way that profits from stocks or real estate will be taxed.
 

dnk

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Any idea about whether indian bitcoin investors are declaring their investment and profit to the indian government?
 

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I wouldn't think there are many who do. As of February of this year, doesn't the Indian government still view crypto as illegal currency? If so, than declaring profits on such would be admitting that you are involved in the trading of an illegal item. And who wants to do that?

As far as I can tell, the Indian government "kind of" considers crypto as an assett, which is how the U.S. IRS views it and taxes it as such.

It looks like the Indian government is much like every other in the world, in that they don't really know how to handle this yet. In America we call that "being behind the 8 ball". If governments want tax money out of this, which in my opinion they should get if other profits are taxed, then they all, from America to India to Russia, need to get on the same page as to how to classify this.

Otherwise, THEY lose out while traders still make bank.
 

dnk

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What about barter deals, when a buyer pays in kind, which will be used to pay expenses, how are they treated?
 

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