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Crypto Crackdown: Income Tax Notices Sent To 1 Lakh Bitcoin Investors Across The Country
Meanwhile, cryptocurrency acceptance is growing throughout the world, despite uncertainties. (Cameron Spencer via Getty Images)
In a move that is sure to affect the cryptocurrency trading environment in India, the Income Tax (IT) Department has sent across one lakh tax notices to the traders who have earned profits through investments in Bitcoin, but haven’t declared it in their income tax return.
Central Board of Direct Taxes (CBDT) is a central government body that directs policy regarding direct taxes in India.
"People who have made investments (in cryptocurrency) 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," CBDT Chairman, Sushil Chandra said.
The step represents a major step towards cryptocurrency regulation by the government. In his budget speech on 1 February, Finance Minister Arun Jaitley had stressed that cryptocurrencies weren’t legal tender in India and that the government will take necessary steps to eliminate their use in Indian payment systems.
The government has also setup a panel to oversee cryptocurrency regulation in the country, which is expected to file its report by 31 March.
"We found out that there is no clarity on investments made by many people which means that they have not declared it properly," Chandra said.
Several cryptocurrency portals have been surveyed by the IT department to get the number of active users on these platforms and those who’ve realised profit through trading, he added.
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