Cryptocurrency and Social Justice: a Study of Indian Taxation Laws on Emerging Virtual Challenges

A democratic form of Govt. is always defined as “by the Public, for the Public and to the Public.” The basic function of a government is to deliver public services to its citizens for which it requires resources to finance its expenditure. Among others, taxation works as a major source to fund public expenditure. Developments and Advancements in the technologies, has enabled the Govt. to identify new ways and opened new platforms to collect taxes. Among them, comes the curious situation of taxation of Cryptocurrency. Unlike the fiat currency, Cryptocurrencies are decentralized, relying on a peer-to-peer network that operates without any third-party intervention like the Central Bank. The purpose of this paper is to explore Cryptocurrency and the prevailing regulatory structure concerning them. It studies the different natures of cryptocurrency and analyses:

(1) Scheme of existing domestic laws and relates cryptocurrency,

(2) Domestic laws affecting taxation of cryptocurrency related activities and

(3) Major economies response to cryptocurrency.