In a major development, about 700 bitcoin investors are said to have been identified by India’s income tax department as having failed to pay taxes on high-value crypto transactions. “We have a big list of persons who were dealing in crypto assets but weren’t paying tax,” a Central Board of Direct Taxation official stated.
700 crypto investors Have Come Under Scanner:
According to reports, India’s income tax authority is cracking down on those who don’t pay their taxes on bitcoin earnings. According to the Economic Times on Tuesday, the department is looking into the high-value crypto transactions of roughly 700 investors, and the authorities are planning to send them notifications.
Most of these persons, according to tax officials, have either failed to declare crypto earnings on their tax filings or have not submitted any tax returns at all. They may be subject to a 30% tax, as well as penalties and interest.
High-net-worth people, non-resident Indians, entrepreneurs, students, and housewives are among those on the list. Some have never filed a tax return in their lives.
Some people, according to tax officials, have gains in excess of Rs 40 lakh but have either not filed tax returns or declared no income on their returns. Furthermore, people have treated cryptocurrency transactions differently on their tax forms, with some claiming revenue as capital gains and others declaring revenue as business income.
FM’s Suggestion On Taxing Capital Gains From Cryptos
In her budget statement last month, Indian Finance Minister Nirmala Sitharaman had suggested a 30% tax on capital gains from cryptocurrencies for the coming fiscal year. The budget also said that regardless of how long an individual has kept crypto assets, a flat tax will be applied.
Tax authorities indicated that in addition to following the tax requirements established in the budget, the department may pursue fines of up to 50% above and above tax.
CBDT Chairman J. B. Mohapatra claimed in an interview with the journal last month that a big number of cryptocurrency investors had not been declaring income and that the income tax agency had gathered adequate data on them. After March 31, he added, the agency will take enforcement action.
