Deals Blip On Tax Radar

The rapid adoption of crypto currencies has resulted in their formal recognition by many sovereign jurisdictions across the globe. Though they were and still are viewed by the Indian government with a great deal of caution and suspicion due to their anonymous nature, dealing in them is not banned, and an effort to discourage their adoption through a circular issued by the Reserve Bank of India was quashed by the Supreme Court 2020. That the term ‘crypto currency’ is a misnomer in India as it is not recognised as a legal tender and therefore not a currency. The consideration earned from dealing in crypto currencies, however, is still Income as defined by Section 2(24) of the Income-tax Act, 1961. The definition is inclusive and clearly brings dealing in cryptocurrencies under the Indian tax net. It, therefore, follows that any person (including a company) buying/selling...