The Income Tax department is issuing notices to crypto currency investors as a result of no transparency in the bitcoin transaction. So far, the department has issued about one lakh notices to people who have invested in cryptocurrencies like Bitcoin and have not declared it in their income tax return, said Sushil Chandra, the Chairman of the Central Board of Direct Taxes (CBDT).
The tax department is issuing notices to people who invested in cryptocurrencies like bitcoin but did not declare income or ‘profits earned’ from them, he said.
He also added that department has found that there is no clarity on investments made by many people, which means they have not declared them properly.
Sushil Chandra also reminded that people who are invested in cryptocurrencies like bitcoin are not yet declared income and have not paid tax on such savings. Subsequently, the department is sending notices to those investors which would give clarity on transactions.
Accordingly, Income Tax department informed all the DGs (Director Generals of Income Tax) across India and they are issuing notices.
Finance Minister Arun Jaitley during his budget speech proposed to eliminate the use of cryptocurrencies since the investment made on bitcoins is illegal.
Out of 15 lakh companies registered with MCA, only 7 lakh are filing tax return forms, Chandra said. This statement is too enough to understand the tax evasion on such investment. The initiative took by the department will increase the efficiency and clarity of transaction.
