Business Mantra News
The Central Board of Direct Tax’s (CBDT) Chairman Mr. Shushil Chandra revealed that the Income Tax Department issued one lakh notices to Bitcoin traders or investors who bought it but did not declare it in their Income Tax Return.
“People who have made investments (in crypto-currencies), 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,” Mr. Shushil Chandra said at an Assocham event in New Delhi.
The move has been taken after the Income Tax Department had conducted various surveys on crypto-currency exchanges to understand how many people were regular contributors, how many had registered themselves and how many have traded on exchanges.
Mr. Chandra said that it was found during survey that there was no clarity on investment made by many people as they had not declared it in their income tax return properly.
It has been noted that the prices of Bitcoin soared to record high last year.
After the Finance Minister has declared crypto-currency as not a legal tender in his budget speech, the government was planning to ensure crypto-currencies were illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in “crypto assets”.
The government has also set up a penal to look into issues relating to crypto-currencies and is likely to submit its report till the end of March 31 2018.