Bitex, theUnited Arab Emirates (UAE) based Cryptocurrency exchange, has announced its issuing of investment declaration reports for all its retail and institutional investors in compliance with the amendments made to the Companies Act 2013, by which it became the first Crypto currency exchange in India to provide such reports.
Background:
In March 2021, The Ministry of Corporate Affairs (MCA) amended Schedule III of the Companies Act, 2013, and made it mandatory for Indian companies, unlisted and private to disclose their dealings in crypto currency or virtual currency they have traded or invested.
Purpose of the Report:
The report will contain information about what the investors have sold or bought, hence, it will act as proof of the exact money the investors made or lost while trading in crypto currencies to tax authorities. (Earlier these details were not provided to the investors)
Taxation over crypto currencies:
The Income-tax Act doesn’t define exactly how crypto currencies are taxed but follows three different approaches to tax.
- First – The gains over trading crypto currencies will be taxed as business income.
- Second – The gains over speculative transactions are taxed as per an individual’s income tax slab.
- Third – It is the capital gains approach in which if investors hold crypto currencies for 36 months or more, the gains would be taxable as long-term capital gains (LTCG), and less than 36 months, it would be short-term capital gains (STCG).
Recent Related News:
The 4th Global Conference on Criminal Finances and Crypto currencies organised by Interpol (also known as International Criminal Police Organization), Europol (European Union Agency for Law Enforcement Cooperation) & Basel Institute on Governance (Switzerland) took place virtually from November 18-19, 2020.
About Bitex
Establishment – 2018
Headquarters – Dubai, UAE
Founder and CEO – Monark Modi
