India Targets 700 Crypto Investors for Non-Payment of Taxes: Report
India’s income tax department has reportedly identified about 700 cryptocurrency investors who have failed to pay taxes on high-value crypto transactions. “We have a long list of people who were transacting in crypto assets but were not paying tax,” said an official with the country’s Central Board of Direct Taxation. Indian Tax Authority Going After 700 Crypto Investors
India’s income tax department is reportedly cracking down on non-payment of taxes from cryptocurrency gains. The department is examining the high-value crypto transactions of about 700 investors, the Economic Times reported Tuesday, adding that the authority is proposing to issue notices to them.
Income tax officials said most of these people have either omitted declaring crypto gains on their tax returns or have not filed tax returns at all. They could face 30% tax, penalty, and interest.
A senior official with the Indian Central Board of Direct Taxation (CBDT) told the publication: We have a long list of people who were transacting in crypto assets but were not paying tax. Initially, (we) have shortlisted about 700 transactions, where tax liability is very high.
The list includes high net worth individuals, non-resident Indians, startups, students, and housewives. Some of them have never filed tax returns.
According to tax officials, some people have gains exceeding Rs 40 lakh but have either not filed tax returns or declared zero income on their returns. Moreover, taxpayers have been treating crypto transactions differently on their tax returns — some declaring income as capital gains while others as business income.
Indian Finance Minister Nirmala Sitharaman proposed in her budget speech last month a 30% tax on capital gains from cryptocurrencies for the next fiscal year. The budget further stated that a flat tax would apply irrespective of how long an individual has held the crypto assets.
Besides complying with the tax rules outlined in the budget, tax officials said that the department may also seek penalties, which may go up to 50% over and above the tax.
In an interview with the publication last month, CBDT Chairman J. B. Mohapatra said that a large number of cryptocurrency investors had not been declaring income and the income tax department has collected enough data on them. He added that the department will initiate enforcement action after March 31. Tags in this story income tax, income tax department, India, India"s income tax, Indian crypto regulations, tax avoidance, tax evasion, tax filing, tax returns
What do you think about India’s income tax department going after 700 crypto investors? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Thailand Approves Tax Relief Measures for Crypto Trading TAXES | 5 days ago Argentinian Tax Authority Will Be Able to Confiscate Digital Wallets to Collect Tax Debts TAXES | Feb 12, 2022
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleUkraine’s Government Launches Official Website for Cryptocurrency Donations Next articleBinance Explores Acquisition of Brazilian Securities Brokerage Firm Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItVenezuela Might Be Affected by Russian Banks" SWIFT Suspension
Analysts from Venezuela have expressed their worries about the expulsion of a number of Russian banks from SWIFT, an international messaging system that allows the interconnection of banks. These measures could affect the finances not only of Venezuela, but also ... read more.Square Enix to Bring Dungeon Siege IP to The Sandbox South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia UK Regulator Bans Floki Inu Ad for Being Irresponsible, Exploiting Investor FOMO