Income Tax Dept Issues Notices to Bitcoin, Other Cryptocurrency Investors

8 months ago admin Comments Off on Income Tax Dept Issues Notices to Bitcoin, Other Cryptocurrency Investors
The tax department is issuing notices to people who invested in cryptocurrencies like bitcoin but did not declare income or ‘profits earned’ from them, CBDT chairman Sushil Chandra said today.

The department has found that there is no clarity on investments made by many people, which means they have not declared them properly, he said.

“People who have made investments (in cryptocurrency) and have not declared income while filing taxes and have not paid tax on the profit earned by investing, we are sending them notices as we feel that it is all taxable,” he said on the sidelines of an event here.

Chandra said that the I-T department has informed all the DGs (Director Generals of Income Tax) across India and they are issuing notices.

Finance Minister Arun Jaitley said in his Budget speech earlier this month that all cryptocurrencies, which include bitcoins, are illegal and the government will take all measures to eliminate their use. Earlier, speaking at the Assocham event, Chandra said that a large number of taxpayers have been brought into the tax net taking the total base to 8 crore.

Also read: Singapore Says No Strong Case to Ban Cryptocurrency Trading

He said the government has consolidated direct tax reforms. Chandra also said that no I-T official can pick up a case at his own discretion and only 0.5 percent of all cases are picked up for scrutiny by the Income Tax Department.

“In direct taxes, lots of reforms have been done and we have consolidated direct tax reforms… Taxpayers net has gone up. We have added large number of taxpayers. Our taxpayers’ base is now 8 crore,” he said.

Noting that the I-T department is cutting down interface between taxman and assesses, Chandra said: “Your cases can’t be picked up by the I-T official by his or her discretion. As the CBDT (Central Board of Direct Taxes) Chairman, even I can’t pick up any case using discretion.”

He also said that the tax department started e-assessment of income tax forms in September 2017 and 60,000 cases have been completed so far. Out of 15 lakh companies registered with MCA, only 7 lakh are filing tax return forms, Chandra said.

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