According to a report by Times of India, 1 Lakh Income Tax Notices has been sent to Bitcoin Investors in the country.

The Income Tax Department of India has been apprehensive about cryptocurrencies since the very onset. It had recently even conducted an investigation and has sent stern notices to people who have invested in the same but have not declared it on their tax return. This was revealed by Mr. Sushil Chandra, the chairman of Central Board of Direct Taxes (CBDT) during an ASSOCHAM event held in New Delhi on Tuesday. It is imperative to note that CBDT is the supreme statutory body which regulates the direct taxation territory of India.

Chandra stated that:

“People who have made investments (in crypto currency) 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.”

Sushil Chandra

Chairman Central Board of Direct Taxes (CBDT)

He informed that various surveys had already been conducted on the crypto exchanges by the Income Tax Department of India for examining the number of regular contributors, regular traders and the ones who had simply registered with the platform.

“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 describing the survey findings and adding that information had already been sent to the Director Generals of Income Tax spread across India about the sending of notices.

In the month of December 2017, it was already in news that the IT department may send notices to 4-5 Lakh HNI dealing in cryptocurrencies. While the sureveys conducted at 9 Bitcoin exchanges in India by the tax department, the official sources of the department had revealed that they have found about 20 lakh entities who are registered on these exchanges. Four to five lakhs of them have been actively indulging in investments and transactions. The Bengaluru investigation wing of the Income tax department have dispatched the information gathered through their earlier probe to eight other wings of the Income Tax department across the country for an in-depth survey.

Also Read: IT Department Is Watching Users Trading Bitcoins Worth INR 1 Crore On Daily Basis

News agency Reuters reported on Monday that the Finance Ministry of India feels that the government is laying down steps which will ensure that the cryptocurrencies are deemed to be illegal within the payment structure. However, the government will appoint a regulator who will supervise the unregulated exchanges trading in “crypto assets.”

S C Garg, the Economic Affairs Secretary, revealed to a private news channel on Monday that the government has also set up a panel which will look deep into the issue of cryptocurrencies and is expected to submit their survey report within 31st March 2018. Finance Minister Arun Jaitley announced in his budget speech on 1st February that the Government of India does not recognises cryptocurrencies as a legal tender of money in the country. Also, he mentioned that the government will take up every measure possible for eliminating its usage as a transaction medium or for financing illegitimate activities.

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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.