Will the bordercreen crying crypto gifts cause Indian tax? | Mint

I have been living in the vague for the past 25 years and continue my business here. On the occasion of my 50th birthday, some of my Indian cousins ​​donated me to my private wallet here in India in India in India, after sharing my private key with them. Should I pay any tax in India on these gifts? – Refraining name on request can a non-resident Indian cryptocurrency receive as a gift from cousins ​​in India without attracting Indian taxes? The answer lies in a mixture of interpretation of tax legislation and cross -border regulatory gaps. India’s foreign exchange laws do not currently regulate the cross-border transfer of cryptocurrencies, making it unclear whether such transfers are legally allowed. In terms of Indian tax legislation, the receipt of cryptocurrency is treated as a gift or for less than the fair market value (where the difference is more than £ 50,000) as revenue under section 56 (2) (x). What is important, cousins ​​under this section are not classified as ‘family members’, and gifts of them usually do not qualify for the release available for gifts received from nearest family members. However, this tax rule only applies if the revenue is received in India, emerges or arises in India, or is deemed. Since you have been living in the UAE for more than 25 years, you are treated as a non-resident under Indian tax laws. Meaning of ‘rising’ and ‘arising’ to determine if income is raised in India, it is important to understand what ‘rise’ or ‘rise’ under tax legislation. Typically, “rising” implies a legal right to receive income – usually based on another party’s obligation. But in the case of a gift, there is no such obligation, because it is voluntary. However, section 56 (2) (x) of the Income Tax Act is a causal provision. This means that it can treat the mere receipt of property – without or under fair market value – as taxable income, even if there is no underlying legal right to receive it. The term “origin” refers to the point when income actually arises. According to this section, revenue is considered the moment the asset (in this case cryptocurrency) is received. While you have received the USDT outside India, the origin and receipt is outside India. In addition, the predominant provision under section 9 (1) (viii), related to money gifts by a resident to a non-resident, would not apply in your case. Therefore, the receipt of USDT of your cousins ​​will not give rise to income taxable in India. In terms of section 22 of the India – UAE Double Taxation Tonance Agreement (DTAA), any ‘other income’ (such as gifts) is only taxable in the UAE. As a UAE tax resident, you would not owe tax in India on this gift. Harshal Bhuta is a partner at Pr Bhuta & Co. Cas