You should read this before accepting salary in Cryptocurrency
With the increase in overseas freelancing work, the clients are giving payment in the form of Cryptocurrencies. Clients are choosing Cryptocurrencies due to their low-cost and convenience, instead of using bank services.
According to a report in Economic Times, the companies that are involved in the Cryptocurrencies business are paying their employees in virtual currency. They are doing so that they can escape from the tedious country’s tax process. But lawyers have strictly told to be more careful towards this transaction. They added that the government is planning to ban all private cryptocurrencies in the country. Hence, if anyone is holding it, they will have to sell overseas.
Selling Cryptocurrencies overseas and transferring the amount to Indian currency, the process will increase their expense.
Although countries like Singapore have allowed the trading of virtual currencies. For a client, based in a country where Cryptocurrency is permissible, becomes more convenient in overseas payment.
However, in India, the legal position of Cryptocurrency is unknown. Since there is uncertainty around, many individuals continue to trade in virtual currencies. That’s why Cryptocurrency payment is not illegal completely yet.
But, not completely legal either.
No doubt, the government has planned to introduce The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the budget session. The bill is yet unknown, but the news is that the bill will give a lucrative offer to existing investors.
RBI Governor, Shaktikanta Das said that cryptocurrency can unbalance the financial situation, which will impact the economy.