As the cryptocurrency community, waits with bated breath, there are already indications that this will probably be one of the toughest battles, the community has had to wage!
Back in December, when the crypto market was in its highest bull run ever, news emerged that after the Income Tax department in India had conducted a survey across several cryptocurrency exchanges based in the country. Stilling fears, the exchanges back then, had reassured users that it was a minor enquiry into the functioning of the companies and nothing major.
However, it appears that the I-T department is not satisfied from its findings. A notice which is signed by MK Pandey, the deputy director at the Income tax department mentions that a user is liable to be taxed if, “One has offered profits generated out of transactions in cryptocurrency for taxation in any year.”
The image was being circulated by a Twitter user @IndiaBits, on Monday.
— IndiaBits (@indiabits21) July 16, 2018
Apart from that, a citizen will have to file details of the sources of income and source of ‘above mentioned income’ as well as the details of the income tax returns filed.
A cryptocurrency holder will also have to submit details of the unique wallet ID of himself as well as his family members of all the exchanges where he/they may hold an account both in india as well as abroad.
The notice states that the information sought for, is for the past two years and need to have been fulfilled by earlier this month.
Crypto-News India View: Given that the fate of cryptocurrencies is still not decided, either in court or the Reserve Bank of India, circulating a notice like this is likely to set off panic among crypto investors. So far, as we know, it is not illegal to merely hold crypto assets. By all means, feel free to tax the community. But we would request the Income tax department to atleast wait a little longer, till the government-backed committee announces the regulations governing cryptocurrencies.
Liked what you read? Join us on Telegram