Indian cryptocurrency traders receive notification from tax authorities

nBankruptcy comment: The Indian tax department previously conducted a survey of the local major cryptocurrency exchange, followed by a notification to local traders asking them to provide details about the cryptocurrency investment and inform them of the tax liability. However, judging from the current situation, such measures do not seem to be cracking down on the enthusiasm of local people to invest in cryptocurrencies, and the number of users and transactions on their major exchanges are constantly on the rise.n
nTranslation: Inan
Encrypted currency investors receive tax notificationsn
According to a Reuters report, the Indian income tax department revealed on Friday that it has notified “tens of thousands of cryptographer” after it investigated nine cryptocurrencies in Mumbai, Delhi, Bangalore and Pune. .n
According to the survey, cryptocurrencies performed more than 3.5 billion U.S. dollars worth of transactions over the past 17 months. A tax official told the news media that people investing in bitcoin and other cryptocurrencies include “tech-savvy young investors, real estate and jewelers,” adding:n
n”We can not ignore this and will have disastrous consequences if we wait until the result of the final ruling on its legitimacy comes out again.”n
nIn December, the tax department has given notice to these investors telling them they need to pay capital gains tax.n
According to Reuters, these tax notices also require investors to provide their cryptocurrencies holdings and funding sources. B.R. Balakrishnan, Head of Survey, Income Tax Division, Karnat State, said:n
n”We found these investors did not provide this information on the tax returns and in many cases did not mention their own cryptocurrencies.”n
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India has 600,000 active crypto currency tradersn
According to the “Bulletin of India,” the tax department also announced the number of cryptocurrency traders active in India.n
A tax official explained:n
n”The strong KYC policy followed by crypto currency trading is one of the key factors in our ability to track the total number of investors in cryptocurrencies.”n
nHe also noted that “while 2.5 million people are registered to trade cryptocurrencies, only 600,000 provide KYC details of the transactions that must be followed, and only those who trade on the exchange.”n
In addition, the survey also revealed that “most of the active users of the cryptocurrency exchange are young people aged 25-35 who are technology-agnostic and sensitive to the cryptocurrency market.”n
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Indian people fear regulationn
Despite repeated warnings from the government, the Indian people still have a great interest in cryptocurrencies.n
In an interview, Sathvik Vishwanath, co-founder and CEO of India’s major cryptocurrency exchange Unocoin, said the government announcement did not affect the registration and trading process. He pointed out that “ordinary crypto-currency traders will not fail to understand what the government has warned.”n
n”In December, we had about 240,000 new sign-ups, that is, 8,000 people a day.”n
nVishwanath also believes that the number of registered users will continue to grow in January, and that the volume will increase.n

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