India’s Income Tax Department recently announced that it has issued notices to 100,000 cryptocurrency investors. The announcement came in light of government surveys into the operations of multiple leading Indian exchanges that have revealed widespread tax evasion on the part of India’s cryptocurrency traders.
Indian Cryptocurrency Investors Accused of Tax Evasion
India’s Central Board of Direct Taxes (CBDT) chairman, Mr. Sushil Chanda, recently told reports that the country’s Income Tax Department has issued approximately 100,000 notices to cryptocurrency investors.
“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,” said Mr. Chanda, whilst speaking at an ASSOCHAM event in New Delhi.
The chairman stated that the Income Tax Department had conducted numerous surveys into the operations of the country’s cryptocurrency exchanges in order to ascertain the scale of the tax evasion being conducted.
“We found out that there is no clarity on investments made by many people which means that they have not declared it properly,” said Mr. Chandra, adding “We have informed all the DGs (Director Generals of Income Tax) across India, they are issuing notices and so that would be taxed.”
India to Crack Down on Use of Cryptocurrencies as “Payment System”
The announcement comes shortly after S.C. Garg, India’s Economic Affairs Secretary, made comments discussing the country’s regulatory path with regard to cryptocurrencies. Speaking to CNBC, Garg stated that the government panel tasked with analyzing issues pertinent to “crypto assets” is expected to deliver its report by the end of the fiscal years, which ends on March 31st.
Reaffirming finance minister Arun Jaitley’s comments from last week, Garg also emphasized the government’s intention to crack down on the use of cryptocurrency as a means of payment, stating that “The government will take steps to make it illegal as a payment system.”
Do you think India will be successful in its efforts to reduce the use of cryptocurrency as a means of payment? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, www.incometaxindia.gov.in
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Author: Samuel Haig