Crypto Traders Would Soon Pay Tax in India
Around 100,000 notices have been sent by the Central Board of Direct Tax (CBDT) for not including their crypto records on their income tax returns. The news has been confirmed by the chairman of CBDT, Sushil Chandra, during an event on Tuesday.
The notices have been sent by CBDT’s law enforcement units all over the country for ensuring that the cryptocurrency investors know about their tax liabilities. Chandra said,
People who have made investments [in cryptocurrencies] 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
According to a nationwide survey, more than 3.5 billion USD worth of cryptocurrencies have been traded in India in the last 17 months. Chandra said that his agency conducted a number of surveys about the domestic exchanges to gather more information about the regular traders. The information extracted included the number of regular contributors, the number of contributors which have registered themselves as well as the amount of trading they have done.
Based on the results of these surveys, the agency said that the investors which had been sent notices were the ones which had failed to disclose the amount of cryptocurrencies they’re holding clearly and properly.
Amidst all of this confusion, local startups have started offering services which help crypto users to determine the amount of money they owe. Cleartax, the tax software startup, recently introduced a crypto tax advisory service. The service is in partnership with Zebpay, the bitcoin wallet.
The future of the blockchain technology was dubious when RBI put a virtual ban on cryptocurrencies, but the recent turn of events certainly show a different picture. Make sure that you know about everything that happens in the crypto world by following CoinFrenzy’s official Instagram page and Telegram channel!