The Tax Authority in India sent Notices to Crypto Traders due to the Unreported Investments
January 22, 2018 7:21 am
Indian Tax Officials are targetting the Crypto Traders who have not revealed their Investment details
The Indian Tax Authority is sending notices to the cryptocurrency investors after finding that few of them has not reported their investments to the tax returns. The government has conducted a survey of crypto trading at the country’s 9 major exchanges and also came to know that more than $3.5 billion worth of transactions were traded over a 17 month period.
Crypto Investors issued with the Notice
The Indian income tax department announced on Friday that it has sent notices to “tens of thousands of people dealing with cryptocurrency” after a survey at nine crypto exchanges in Mumbi, Delhi, Bengaluru, and Pune.
A tax official said that the outlet among those invested in bitcoin and other cryptocurrencies are “tech-savvy young investors, real estate players, and jewelers.”
“We cannot turn a blind eye. It would have been disastrous to wait until the final verdict was out on its legality.”
In December, the tax department already sent out notices to investors informing them that they need to pay tax on capital gains.
B.R. Balakrishnan, a director general of investigations at the income tax department in the southern state of Karnataka revealed about the report.
“We found that investors were not reflecting it on their tax returns and in many cases, the [cryptocurrency] investment was not accounted for.”
600,000 Active Crypto Traders in India
A Tax Official stated:
“A key factor which helped the department track the total number of investors in the cryptocurrency market was the strong KYC policy (Know Your Customer) followed by the currency exchanges. While there are 25 lakh (2,500,000) people registered to trade in cryptocurrencies, only 6 lakh (600,000) have provided the KYC details that are mandatory for trading, and only these people have traded on the exchanges.”
One of the publications had revealed that most of the people who all are active on the cryptocurrency exchanges are between 25-35 years age group. The tech-savvy and keenly are aware of the cryptocurrency market.
Indians are discouraged by the Regulations
Even though the government kept warning constantly, the excitement and interest kept growing.
Sathvik Vishwanath, co-founder, and CEO of leading Indian exchange Unocoin, said:
“The registration and grading procedures have not been affected by government announcements. The warning from the government is not something the regular crypto trader would not know about. We saw about 240,000 user registrations in December. So that is about 8,000 per day.”