Indian tax authorities send tax notifications to 500,000 Bitcoin traders

nRunaway Comment: Although the Indian regulators have not yet clear the management rules and guidance for the cryptocurrency industry, but the relevant government departments have indeed conducted more investigations, from their own point of view of management. At present, the Indian income tax department has started to send tax advice to some 500,000 Bitcoin traders across the country, regulating transactions. At the same time, the local bitcoin exchange also made corresponding efforts, hoping to self-adjust before the government introduced specific policies.n
nTranslation: Inan
The Indian income tax department is sending notices of taxation to 500,000 Bitcoin adopters who conduct cryptocurrencies transactions there.n
Key Indian tax officials are expanding their investigation of Bitcoin investments and transactions and visited at least nine bitcoin exchanges throughout the country last week. At that time, it was reported that the tax authorities suspected that there was a tax evasion in the field and “investigation” had been conducted to clarify the identities of investors and traders and the transactions they conducted, the identity of the relevant bank account holder and other details.n
Finally, a spokeswoman for the tax department confirmed the news, claiming information was collected through the Bitcoin Exchange, its investors and sources of investment to tax the related conduct.n
For more than a week now, the income tax department of India has set its sights on 400,000-500,000 HNWIs across the country and found them trading on bitcoin exchanges in India.n
According to the Press Trust of India, the largest news agency in the region, official sources disclosed that between 400,000 and 500,000 of the roughly 2 million registered users on nine exchanges have been engaged in bitcoin transactions and investments .n
A senior tax official who understands the “investigation” said:n
n”The tax department is investigating charges of tax evasion after looking at the records of individuals and entities and is sending a notice to them that they will have to pay capital gains tax on bitcoin investments and transactions.”n
nThe Bitcoin Exchange in India has formed a self-regulating body to develop the standard KYC and AML norms because the regulatory and guidance of the local regulators is not clear. Earlier this month, the Bank of India has issued a warning against the investment or use of cryptocurrencies, such as bitcoin. In mid-November, due to a request for a clear legal status of Bitcoin in India, the Supreme Court of India has urged relevant government departments to regulate bitcoin.n

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