After completing survey on crypto exchanges in India, income tax department of India is all set to issue notice to 4 to 5 lakh high networth individuals (HNI) across the country out of all who were trading on the exchanges in Bitcoin and other unregulated virtual currencies.
Last week IT (Income Tax) team had conducted surveys at nine such exchanges at Pune, Bangalore, Mumbai, Hyderabad, Delhi and other cities to check investment in crypto and instances of tax evasion, if possible. But now IT dept is planning to probe big investors who were indulged in huge transactions and purchase.
As per reports, such investors need to pay capital gain tax over trade and exchange of Bitcoins. It is also confirmed that the team has collected data of almost 20 lakh investors and serving notice to top 4-5 lakh. On rest, situation is unclear. Indian govt is fighting against black money in the country and demonetization of November 2016 was one of the biggest crackdown of 21st century on black money in the history of India.
IT dept is suspecting that the suspended black money has been converted in to cryptocurrency after demonetization and the network can be used in Hawala, drug deals and ransom where finding an identity will be tough.
The Reserve Bank of India (RBI) has also cautioned users, investors, holders and traders of virtual currencies. The government has also said that it does not recognise 'cryptocurrency' as legal tender in India and suggested to stay away from trading and exchange.