Reliance Cryptocurrency: Reliance Jio has created a buzz with the introduction of its first-ever cryptocurrency, JioCoin, in partnership with Polygon Labs. Unlike popular cryptocurrencies like Bitcoin, JioCoin is not yet available for transactions, as it is unlisted and has no market value. Instead, JioCoin operates as a reward-based token that users can earn through specific Jio apps and services. This article explains how JioCoin works, the role of the JioSphere browser, and the tax implications for the Reliance Cryptocurrency in India.
What Is JioCoin?
JioCoin, often referred to as Reliance Cryptocurrency, is an Ethereum Layer 2-based blockchain reward token. It is a unique initiative by Reliance Jio, designed to allow users to earn tokens by interacting with various Jio mobile and internet-based services. JioCoin is not yet available for trading or transactions, but it’s expected that users can earn this token by engaging with services like the JioSphere browser.
How Does JioCoin Work?
JioCoin mining begins when users browse the internet through the JioSphere browser. As users explore the digital ecosystem of Jio services, including Jio Cinema, MyJio, and JioMart, they’ll have the opportunity to earn JioCoin tokens. The mining process is integrated seamlessly into Jio's services, which will reward active users. At the time of its launch, JioCoin will be added directly to the user's wallet, making it a rewarding experience for those engaged with Jio’s platform. Though the details are still limited, it’s clear that JioCoin aims to revolutionise the way Reliance Jio users engage with digital services.
JioCoin and the Reliance Cryptocurrency Tax Implications
When discussing Reliance Cryptocurrency and JioCoin, it’s important to understand the tax rules for cryptocurrencies in India. The Indian government has not recognised cryptocurrencies as legal tender. According to the Reserve Bank of India (RBI), cryptocurrencies such as Bitcoin are not authorised as a medium of payment. Consequently, any earnings from trading or using cryptocurrencies are subject to a 30% tax, along with a 1% Tax Deducted at Source (TDS).
With the upcoming launch of JioCoin by Reliance Jio, it will be interesting to see how the token fits into the existing taxation framework.
Will JioCoin Be Subject to Cryptocurrency Tax?
As of now, the tax implications of Reliance cryptocurrency, JioCoin remain unclear. The tax rules surrounding digital currencies in India currently apply to cryptocurrencies like Bitcoin, and they state that any income derived from crypto transactions is taxable at 30%. The government is yet to issue clear guidelines regarding JioCoin, but it will be interesting to see how the cryptocurrency will be classified and whether it will be subject to similar taxes once it enters the market.