Skip to main content

Indian Crypto Traders Getting Notices From Tax Authority Due to Unreported Investments

Tax Notices Sent to Crypto Investors

Indian Crypto Traders Getting Notices From Tax Authority Due to Unreported InvestmentsThe Indian income tax department revealed on Friday that it has sent notices to “tens of thousands of people dealing with cryptocurrency” following a survey at nine crypto exchanges in Mumbi, Delhi, Bengaluru, and Pune, according toReuters.
The survey shows that more than $3.5 billion worth of transactions have been conducted over a 17-month period. A tax official told the news outlet that among those invested in bitcoin and other cryptocurrencies are “tech-savvy young investors, real estate players, and jewelers,” adding that:
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.
The tax notice seen by Reuters also asks investors to provide details of their total cryptocurrency holdings and the source of their funds. B.R. Balakrishnan, a director general of investigations at the income tax department in the southern state of Karnataka, was quoted:
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

The tax department has also revealed the number of active cryptocurrency traders in India, according to the Indian Express.
“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,” a tax official explained, adding that:
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.
In addition, the survey shows that “Most of the people active on cryptocurrency exchanges are in the 25-35 years age group, tech-savvy and keenly aware of the cryptocurrency market,” the publication added.

Indians Undeterred by Regulations

Indian Crypto Traders Getting Notices From Tax Authority Due to Unreported InvestmentsDespite multiple warnings by the government, interest in cryptocurrencies in India remains strong.
Sathvik Vishwanath, co-founder and CEO of leading Indian exchange Unocoin, said “the registration and trading procedures have not been affected” by government announcements. He noted, “the warning from the government is not something the regular crypto trader would not know about,” adding:
We saw about 240,000 user registrations in December. So that is about 8,000 per day.
Vishwanath is also confident that the number of user registrations will grow in January. He said, “The holiday season in India usually brings in less volume and it is no different this time…I am quite confident that the volume would improve

Comments

Post a Comment

Popular posts from this blog

Onecoin Offices Raided in Sofia, Servers Shut Down

50 People Questioned, No Arrests Servers, documents and other evidence have been confiscated from Onecoin and about 50 people have been questioned by investigators, according to the  official statement . No arrests have been reported so far. Bulgarian prosecutors, national security agents and members of the organized crime combating unit were involved in the joint operation. They acted on request from Germany, where Bulgarian-born “founder and visionary” of Onecoin, Ruja Ignatova, had been taken to court. “Onecoin” payments were banned in the Federal Republic and in 2016 the UK Financial Conduct Authority issued a warning about the company. The Ministry of Interior of Bulgaria released a video of the search in Onecoin’s building: In just three years, about three million people have subscribed for the educational packages offered by  Onecoin , Bulgarian prosecutors announced at a briefing on Friday. The company is suspected of commercial fraud, money laundering and illeg...
1 comment
Read more

Real Cryptos Reside on Your Cellphone

The internet was born on desktop devices but it now resides in our pockets – or more often our palms, since we rarely stop using our mobile devices long enough these days to put them away. When Satoshi published his white paper in October 2008, desktop was still the preferred means of doing business on the web, but all that was about to change. 14 months earlier, Steve Jobs had unveiled the iPhone, ushering in the stirrings of what would become the mobile revolution. Meanwhile, Satoshi was quietly getting on with his own cryptocurrency revolution. By late 2010, Satoshi had checked out, but the seed he had sown was sprouting into a digital money tree that was growing fast. By 2016, mobile web usage outstripped desktop usage, and the crypto economy, which had stagnated for the last two years, exploded into life. Suddenly everyone was releasing coins and tokens, many of which were mobile-oriented, and everyone was tweeting, Snapchatting and vlogging about crypto. There was just one p...
Post a Comment
Read more

New National Minimum wage report to be submitted next week.

By Johnbosco Agbakwuru ABUJA— BARING any last minutes change, the tripartite committee approved by the Federal Government to review the minimum wage will submit its report this week. Although the committee was supposed to present its report last month, the public holidays to mark Eid-el-Kabir affected the date. It was  gathered that the committee met, yesterday, at Trsnscorp Hilton, Abuja and a highly placed source privy to the meeting said that the organised labour was pressing that the report be concluded today. The source, who spoke on condition of anonymity, said that though the government representatives had requested for more time,  labour felt the report of the committee had been delayed for too long. “We are pressing that the report is made ready today. We are supposed to conclude everything about the report in August but the Sallah holiday affected the planned date. Though the government representatives have requested for more time, we feel that ...
Post a Comment
Read more