Indian Tax Authorities After Crypto Investors
February 8, 2018
The Income Tax Department of India is all over crypto investors who has made money but haven’t paid taxes. As the chairman at Central Board of Direct Taxes reports, tax bills have been sent to more than 100 000 investors.
“We found out that there is no clarity on investments made by many people, which means 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”, said Sushil Chandra, the head of the department.
The board will also investigate investments sources for cryptocurrencies. The funds of unknown origins will turn into tax base.
“We will tax that particular amount (invested in cryptocurrencies) and they should pay tax on that”, Chandra added.
In December 2017 tax agencies of India monitored crypto exchanges to gather information on trading investors and conducted transactions. As reported, total number of those to be charged may exceed 500 000 though currently the government is going to deal with people who got into money on crypto trading.
Indian authorities’ approach towards cryptocurrencies is rather ambiguous. Since the beginning of the year possible restrictions of crypto turnover were reported to be introduced in the country which affected the market in general. Yet the information has proved to be inaccurate later.