Reinventing Regulation: The Curious Case of Taxation of Cryptocurrencies in India

NUJS Law Review, Vol 10, Issue 4, 2017

26 Pages Posted: 22 Mar 2018

See all articles by Hatim Hussain

Hatim Hussain

University of Oxford; University of Cambridge - Cambridge Centre for Alternative Finance; Schwarzman College, Tsinghua University

Date Written: December 12, 2017

Abstract

Nearly twenty-five years ago, the internet disrupted the world and started a new era of technological supremacy. Today, with the rise of cryptocurrencies and its underlying technology, we stand at the helm of another such revolution. Cryptocurrencies like bitcoin are decentralised, digital currencies relying on a peer-to-peer network which operates without the need for a third-party intermediary like the Reserve Bank of India. Coupled with lack of regulatory guidance, its unique technical aspects create huge complications in its taxation. While much ignorance still prevails in respect of cryptocurrencies, countries around the world have finally started taking notice and acting upon it. This paper focuses on what cryptocurrencies are, why they are important, and the prevailing regulatory structure concerning them. It overviews the complete landscape for taxation of cryptocurrencies like bitcoin, analysing the indirect and direct tax structure, particularly after the implementation of Central Goods and Services Tax Act, 2017, while also addressing the issues concerning the evasionary practices. The findings help in assessing the regulatory aspects in light of the technological, economic, social and financial forces, and establishing a set framework for taxation of cryptocurrencies.

Keywords: Taxation, Cryptocurrency, Bitcoin, India, GST

Suggested Citation

Hussain, Hatim, Reinventing Regulation: The Curious Case of Taxation of Cryptocurrencies in India (December 12, 2017). NUJS Law Review, Vol 10, Issue 4, 2017, Available at SSRN: https://ssrn.com/abstract=3143091

Hatim Hussain (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

Cambridge
United States

Schwarzman College, Tsinghua University ( email )

Schwarzman College, Tsinghua University
Haidian District
Beijing, Beijing 100084
China

HOME PAGE: http://https://www.schwarzmanscholars.org/

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