India's Income Tax Department Issues Notices to Cryptocurrency Investors
India's tax authority, the Income Tax Department, has issued notices to a total of 100,000 cryptocurrency investors. Of course, the notices were issued in relation to concerns of tax evasion conducted by cryptocurrency traders in the country.
Indian authorities look into cryptocurrency exchanges
Indian authorities have been looking into the operations of several exchanges, which exposed tax evasion conducted by cryptocurrency traders. The fact that the Income Tax Department has issued notices to 100,000 cryptocurrency investors has been confirmed by the chairman of the Central Board of Direct Taxes, Sushil Chanda. 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.”
According to Chanda, the Indian tax authorities conducted many surveys into the operations of all exchanges that operate in the country with the main purpose to determine the scale of the tax evasion conducted in India. Of course, the results were concerning for authorities, since an important number of notices have been issued.
“We found out that there is no clarity on investments made by many people which means that they have not declared it properly. We have informed all the DGs (Director Generals of Income Tax) across India, they are issuing notices and so that would be taxed.”
For the moment, authorities have revealed nothing else on the matter, so it remains to be seen what is the actual scale of the tax evasion traced at cryptocurrency investors.
