Indian Tax Department targets Bitcoin investors and Start-ups’ through ICOs

Nishanth Shetty

December 19, 2017 1:26 pm

Indian Tax Department targets Bitcoin investors and Start-ups' through ICOs | Coindelite News
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Since a week ago, the government of India has been concerning about cryptocurrencies. After it raided crypto exchanges, it is now constantly investigating wealthy Bitcoiners through the Income Tax Department of India (ITDI). Provoking and investigations, the Securities and Exchange Board of India (SEBI) announced new scrutiny initiatives about the Initial Coin Offerings (ICOs) which is known as “Ponzi Schemes”.

India is Targetting the Wealthy Bitcoin Traders

Press Trust of India described:

“Those individuals and entities whose records were recovered by the department and referencing recent raids on cryptocurrency exchanges, “are now being probed under tax evasion charges. Notices are being issued and they will have to pay capital gains tax on the bitcoin investments and trade.”

The various reports say, still more surveys are in the process of being out to India’s cryptocurrency exchanges, seeking about the trading habits of its high-net-worth individuals (HNIs), strongly half a million customers are suspecting of failing to pay tax.

The Bengaluru division is exploring the investigation across India.

The operations are undertaken with the authority of section  133 A of the Income Tax Act.

Which says:

“Evidence for establishing the identity of investors and traders, the transaction is undertaken by them, the identity of counter-parties, related bank accounts used, among others.”

Regional media suspect Bitcoin’s massive price has been accelerating the run-up nation’s control weapons to take strong action. The Indian government is also having a war on calling black money, a less reputable paper, and another factor for the bitcoin traders who are focused on it.

India Targets Initial Coin Offerings

Through the warning statements and pronouncements of bitcoin as an illegal tender, the Reserve Bank of India is also has been very active, rhetorically, issuing press releases and commissioning studies.

It seems like the Indian government has referred European union Crackdown, to derive from the Panama Papers and Paradise Papers, which embarrassed many world governments for their lack of vigilance when it comes for tax compliance of celebrities and the well-connected as well.

Although the country has taken a hostile public stand towards Bitcoin, there is no Know-Your-Client (KYC) or anti-money laundering (AML), clearly speaking about Crypto Exchanges. In fact, they remain uncontrolled. Trading is peculiarly purified: it’s not illegal, but it’s not legal.

 The Securities and Exchange Board of India  told in NDTV:

“SEBI cannot allow gullible investors to be taken for a ride with unlawful promises by these exchanges and those claiming to ‘mint’ cryptocurrencies. A number of them are suspected to be indulging in fraudulent activities without actually minting any such virtual currencies that require very complex algorithms.”

SEBI is actively supposed to activate ICOs in the country and soon. Although ICOs are considered a new way of funding projects in many parts of the world, they are gaining the reputation for the lack of real products, superb promises, and complete scandals. SEBI refers to ICOs as Ponzi schemes.

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