The Legality of Bitcoin in India

Similar to most countries in the world, there is no law against cryptocurrency or its usage in India. That can only be seen as a positive aspect for future Bitcoin adoption growth, though, considering how consumers are skipping credit cards and going straight to mobile and peer-to-peer payment solutions.

However, that does not make Bitcoin legal by default, as no law against something doesn’t mean it is acceptable to do a particular thing. Governments all over the world are trying not to ban Bitcoin in their country, as it would stifle FinTech innovation. No one wants to be left out in the future financial services and technology arms race, and cryptocurrency plays an integral part in that process.

While most countries have a law specifying which entities can create currencies, things are a bit different in India. There are certain guidelines as to who may issue legal tender and bank notes although neither of these terms has been clearly defined. Moreover, there is no clear-cut definition of a “currency” in the country, which leaves a lot of wiggle room for cryptocurrencies such as Bitcoin.

So where does this leave Bitcoin in the country? There is no definitive answer to this question, as it can be either currency, a good, a commodity, a payment system, or a pre-paid instrument. Or to be more precise, it could end up being none of the above either, as there is no clarity regarding the definition of any of these terms.

To make matters even more confusing, there are still a lot of regulatory concerns over Bitcoin. Cryptocurrency is often associated with anonymity, even though KYC and AML regulations apply to Bitcoin companies. Taxation of cryptocurrency in India will be a different discussion, though, as it would require central and state governments to decide whether or not Bitcoin is subject to taxes in the future.
The research paper draws an intriguing conclusion:

“In the final analysis however, Government of India ought to recognize Bitcoin as an opportunity and harness this opportunity for the social and economic betterment of the Nation. As the internet represented an opportunity, Bitcoin too represents an opportunity which, as highlighted by various eminent commentators, can help in decentralization of economic power, greater financial access and ultimately, break down socio-economic barriers.“
It is not the first time advice is voiced regarding how it would be more beneficial to governments to try and allow for Bitcoin and cryptocurrency growth, rather than completely opposing the concept from day one. Bitcoin is a part of FinTech, and any economy looking to grow would do well to be lenient when it comes to Bitcoin. No decisions should be taken overnight, and open dialogue with industry experts will be beneficial for all parties involved.

Constitutional Amendments

The Constitution (122nd Amendment) (GST) Bill, 2014

Highlights of the Bill

The Bill corrects the Constitution to present the products and administrations charge (GST).

Parliament and state lawmaking bodies will have simultaneous forces to make laws on GST. Just the inside might demand an incorporated GST (IGST) on the interstate supply of products and administrations, and imports.

Liquor for human utilization has been exempted from the domain of GST. GST will apply to five petroleum items at a later date.

The GST Council will suggest rates of assessment, time of duty of extra expense, standards of supply, exceptional procurements to specific states and so forth. The GST Council will comprise of the Union Finance Minister, Union Minister of State for Revenue, and state Finance Ministers.

The Bill engages the middle to force an extra assessment of up to 1%, on the between state supply of merchandise for a long time or more. This expense will collect to states from where the supply starts.

Parliament might, by law, give remuneration to states to any loss of income from the presentation of GST, up to a five year period.

Key Issues and Analysis

A perfect GST administration expects to make a fit arrangement of tax assessment by subsuming every single backhanded expense under one duty. It looks to address challenges with the current roundabout duty administration by widening the assessment base, taking out falling of charges, expanding consistence, and decreasing financial twists brought on by between state varieties in expenses.

The procurements of this Bill don’t completely adjust to a perfect GST administration. Conceding the toll of GST on five petroleum items could prompt falling of duties.

The extra 1% charge required on products that are transported crosswise over states weakens the target of making an orchestrated national business sector for merchandise and administrations. Between state exchange of a decent would be more costly than intra-state exchange, with the weight being borne by retail purchasers. Further, falling of duties will proceed.

The Bill allows the inside to require and gather GST over the span of between state exchange and business. Rather, a few specialists have suggested an altered bank model for between state exchanges to simplicity charge consistence and authoritative weight.

Son’s and daughter’s  privilege in father’s property

Son’s and daughter’s  have a few rights as a coparcener. Case in point, they get a privilege in hereditary property by conception; right to survivorship: if one coparcener bites the dust the property gets isolated among the rest. They are in joint ownership and responsibility for and on the off chance that they need parcel, they can assert so by recording a segment suit.

Coparcener can likewise procure a different property and in the meantime has right to distance the property to any more interesting his offer in tribal property and self-gained property. Father can likewise blessing property to his child and it won’t be dealt with as hereditary property which the child can then estrange to anybody he needs.

Could a father blessing a property to his son?

In C. N. Arunachala Mudaliar versus C. A. Muruganatha Mudaliar the Supreme Court held that property talented by a father to his child couldn’t get to be tribal property in the hands of the child essentially by reason of the way that he got it from his dad. The court watched that the property of the granddad can regularly vest in the father as tribal property.

The father gets tribal property under two conditions i.e. acquires such property on the demise of the granddad or gets it by allotment made by the granddad himself amid his lifetime. Be that as it may, when the father acquires the granddad’s property by method for blessing, it is not viewed as a hereditary property.

Son’s and daughter’s  don’t have any case on property skilled by granddad

A blessing from father to his child is not a portion of tribal property as the child does not acquire the property on the demise of the granddad or get it by segment made by the granddad amid his lifetime. The grandson has no lawful right on such property on the grounds that his granddad presented some help on his dad which he could have gave on whatever other individual also.

Hence, the interest which he takes in such property must rely on the will of the grantor and along these lines, when the child has the property from his dad as a blessing, his children or little girl can’t claim part in it calling it tribal property. He can estrange the talented property to anybody he prefers and in any capacity he loves. Such a property is dealt with as self-gained property, gave there is no communicated aim in the deed of the blessing by the granddad while gifting the property to his child.

Son’s and daughter’s have property rights just on the properties that have regressed upon their dad and get to be hereditary property in the father’s hands.