Crypto-Investors In India Receive Tax Notices – 100,000 Servedbr>
The Income Tax Department of India has reportedly issued 100,000 tax notices to crypto-investors that did not declare income or profits earned from the cryptocurrency market.
In December 2017, the tax department surveyed nine major cryptocurrency exchanges across six major cities, including Delhi, Bengaluru, Hyderabad, Kochi, and Gurugram. The surveys were undertaken for “gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties, and related bank accounts used, among others.”
Sushil Chandra, chairman of the Central Board of Direct Taxes (CBCT), said the department has found that there is no clarity on investments made by Indian investors, which means they have not declared them properly.
“People who have made investments in cryptocurrencies and have not declared income while filing taxes, and have not paid tax on the profit earned by investing, we are sending them notices, as we feel that it is all taxable,” said Chandra. “We have informed all the DGs (Director Generals of Income Tax) across India, they are issuing notices, and so that would be taxed.”
Chandra added that the Income Tax Department will also try to assess the source of the money invested in these cryptocurrencies. If their origin can’t be accounted for, they will come under tax-scrutiny.
“So we will tax that particular amount (invested in cryptocurrencies) and they should pay tax on that,” he said.
Chandra’s statement comes days after Economic Affairs Secretary Subhash Chandra Garg said that the government will come out with a framework to regulate cryptocurrencies by the end of March.