16:26 GMT +316 November 2018
Listen Live
    Bitcoin

    India Asks Cryptocurrency Investors to Pay Taxes on Earning Or Else Face Action

    CC0
    Asia & Pacific
    Get short URL
    0 10

    A high-level committee appointed by the Indian government is looking into the possibility of imposing restrictions on cryptocurrencies in the country. The Finance Ministry has already warned investors to be wise with their money, comparing cryptocurrencies to Ponzi schemes.

    New Delhi (Sputnik): The Indian government has asked cryptocurrency investors across the country to pay taxes on their earnings or else face the music. India's Central Board of Direct Taxes (CBDT) said on Tuesday that action will be taken against those who would try to conceal incomes from crypto assets.

    Chandra said that the Income Tax Department has issued notices to about one hundred thousand persons who have invested in cryptocurrencies and have not declared the profit earned thereof while filing their income tax returns.

    "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," Chandra said while addressing an "ASSOCHAM Post Budget Seminar."

    The CBDT chairman informed that the Income Tax Department had conducted various surveys on cryptocurrency exchanges to find out how many people were regular contributors, how many had registered themselves and how many had done trading on that platform.

    "We found out that there is no clarity on investments made by many people which means that they have not declared it properly," Chandra added.

    He further said that, as per income tax (laws), whatever money one is investing (in cryptocurrency), it would be taxable if it is unexplained. Besides, even the profit gained on the same is taxable.

    READ MORE: India Preparing to Bring Cryptocurrencies Under Regulatory Framework — Official

    "So we will tax that particular amount and they should pay tax on that," Chandra said.

    Meanwhile, continuing its downward move since the start of 2018, Bitcoin plunged to a three-month low and was trading below $6000 on Tuesday.

    Related:

    More Online Transactions Pose Cyber-Challenge to Indian Banks
    India's Central Bank Floats Idea of Country's Own Cryptocurrency
    Indian Gov't Vows to Weed Out Cryptocurrencies From India
    India Losing $1bn in Taxes Every Year by Not Regulating Virtual Coins - Expert
    Tags:
    cryptocurrencies, income, income tax, regulations, bitcoin, India
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik