Indian Tax Authority Sends Tax Notices To 100,000 Cryptocurrency Investors

- Advertisement -

Tax officials in India are seeking disclosure from investors who saw gains in cryptocurrencies to ascertain taxable income.

On February 6, 2018, India’s income tax authority revealed it has sent out 100,000 tax notices to investors it believes hold value in cryptocurrencies, in an effort to exert a level of control over the growing marketplace.

Sushil Chandra, head of India’s Central Board of Direct Taxes, didn’t mince words in a news release during an event held by the Associated Chambers of Commerce and Industry of India. He said, “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.”

It’s up for debate as to what type of guidelines will govern cryptocurrencies in India, as no official stance has been presented by authorities to the public. Cryptocurrencies are not considered legal tender, based on remarks made by Finance Minister Arun Jaitley as he announced the latest budget plan. In a budget speech given February 1, he said, “The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”

Although not considered a currency by India, cryptocurrencies are not tax-exempt in the country. According to Chandra, an issue arises regarding a lack of disclosure from investors:

“We found out that there is no clarity on investments made by many people, which means that they have not declared it properly.”

Based on an estimate by Ajeet Khurana, who heads the Blockchain and Cryptocurrency Committee of India, approximately five million citizens are invested in cryptocurrency, many through local exchanges such as Zebpay, Coinsecure, Coinome, Unocoin, and Bitxoxo. According to Khurana, cryptocurrency exchanges operating in India have cooperated with the tax authority by helping the department identify users. “All the exchanges very happily and voluntarily provided that information,” observed Khurana.

- Advertisement -

The Blockchain and Cryptocurrency Committee hopes that official guidelines will be released in the next coming months, said Khurana. Regarding the tax notices, he concluded, “It is a sign of the maturing of the ecosystem and not a cause of worry to anybody.”

Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.

Like what you read? Follow us on X @Bitnewsbot to receive the latest India, crypto taxes or other Ethereum business and finance news.

- Advertisement -



Previous Articles:

- Advertisement -

Latest

Bitcoin Drops 10% From Highs Amid Quantum Computing Warnings

Bitcoin dropped nearly 10% from its record high, falling close to $103,000 after reaching $112,000 last week. BlackRock warned that advances in quantum computing could...

Czech Justice Minister Resigns Over $45M Bitcoin Donation Scandal

Czech Justice Minister Pavel Blazek resigned after controversy over accepting and selling Bitcoin from a convicted criminal.The Justice Ministry auctioned nearly 500 Bitcoin, raising...

Uniswap (UNI) Rebounds Above $6 After Brief Uptrend Breakdown

Uniswap's UNI token dropped below its key uptrend line following a failed hold above the $6.00 support level.High trading volumes accompanied the decline, including...

Michael Saylor Invites Joe Rogan to Discuss Bitcoin on Podcast

Michael Saylor has shown interest in discussing Bitcoin on The Joe Rogan Experience podcast.The idea has generated excitement in the Bitcoin community, with some...

Congress Debates Stablecoin Bill Amid Rising Bank and Crypto Tensions

U.S. lawmakers are moving forward with the Senate Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, with debates set to resume after...

Must Read

6 Best VPN Providers That Accept Monero

Privacy and anonymity are probably the most important things that we should all consider in today's internet era. Although there are a lot of...