Bitcoin rally: Income tax sleuths conduct surveys on 9 major exchanges, detect HNI entries

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Bitcoin income tax india news its probe into bitcoin investments and trade, the Income Tax IT department is set to issue notices to 4 to 5 lakh high networth individuals HNI across the country who were trading on the exchanges of this unregulated bitcoin income tax india news currency. The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion.

I-T dept conducts surveys at Bitcoin exchanges country-wide. Sources said that the Bengaluru investigation wing of the tax department, which supervised bitcoin income tax india news week's operations, has now dispatched the information of the individuals and entities found on these databases to eight other such wings across the country for a detailed probe.

Notices are being issued and they will have to pay capital gains tax on the bitcoin income tax india news investments and trade," a senior official privy to the operation said. About lakh HNIs and their businesses are being bitcoin income tax india news notices which will first seek their relevant financial details and subsequently establish the tax demand, if any, he said.

As the bitcoins or the virtual currencies VCs are illegal and unregulated in the country as of now, the IT department has taken action as per the existing provisions, they said.

The survey operations conducted last week, under section A of the Income Tax Act, were undertaken for "gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties, related bank accounts used, among others," they said.

A survey action under the IT law pertains to the tax officials making a surprise visit to the business premises of the party under action but not their residential ones.

The trigger for the action is understood to be the huge spike being registered in the value of bitcoins and other virtual currencies in the recent past. Suspected black money being converted into white, post demonetisation, through the use of bitcoins was also under the department's scanner, officials said. Earlier this month, there was a spurt in the value of a bitcoin.

It rose from under USD 10, at the start of the year to close to USD 20, before a sharp 20 per cent plunge within hours. Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause for concern among central bankers the world over for quite a while now. The government has also said that it does not recognise 'crypto-currency' as legal tender in India.

In March, the Union finance ministry constituted an Inter-Disciplinary Committee to take stock of the present status of virtual currencies both in India and globally and suggest measures for dealing with them. Income Tax to send notices to lakh people trading in bitcoin. I-T dept conducts surveys at Bitcoin exchanges country-wide Sources said that the Bengaluru investigation wing of the tax department, which supervised last week's operations, has now dispatched the information bitcoin income tax india news the individuals and entities found on these databases to eight other such wings across the country for a detailed probe.

The committee has submitted its report which is being examined. Story highlights The notices will first seek the relevant financial details and then establish tax demand, if any. Warren Buffett bashes bitcoin, says stocks are better. Winds up to 70 kmph, thunderstorms likely to lash north, east India tomorrow: Thunderstorm likely to hit Himachal Pradesh; Met department issues five-day weather warning.

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In its first survey into the trading of cryptocurrencies like Bitcoin, the Income Tax I-T department has found that there are six lakh active cryptocurrency traders — out of the total 25 lakh registered to trade — in nine cryptocurrency exchanges across the country.

The survey found that crypto- currency worth Rs 17, crore has been traded on the exchanges, with a year-old who invested Rs 25 lakh holding Rs crore in bitcoins after carrying out trade worth Rs crore, since the initial investments in the decentralised currency. Based on the findings of the survey, the state unit of the I-T department has communicated to its counterparts across the country the manner of assessing virtual currencies for tax purposes.

It has advised that cryptocurrencies held for long periods of time by investors should be viewed as capital assets.

Similarly, cryptocurrencies of frequent traders of the virtual currencies should be seen as business income. We have not been able to find the amount that has been liquidated and this exercise is still on. Also Read Imagine the world on Blockchain: The official said a key factor which helped the department track the total number of investors in the cryptocurrency market was the strong KYC policy Know Your Customer followed by the currency exchanges — while there are 11 such exchanges across the country, only nine are active.

Most of the people active on the crytocurrency exchanges are in the years age group, tech-savvy and keenly aware of the cryptocurrency market.

Cryptocurrencies are based on blockchain technology, and as many as 1, types of these currencies are reported to be in existence. Till about five years ago, the number of traders in Bitcoin was estimated to be around only 50, in India.

That number has grown as the value of the currency, which is deflationary in nature, has risen rapidly in recent times. While one Bitcoin was worth around Rs 15, till a couple of years ago, it is now in the range of Rs 10 lakh.

The maximum number of Bitcoins that will be available is 21 million, of which about 14 million have been created since the currency appeared on the Internet in Only 40 per cent of the 21 million that will be created by will be in circulation, say cryptocurrency experts. January 11, 7: Bitcoin Income Tax department. Hint of reverse swing spells trouble for Royal Challengers Bangalore in Hyderabad 4 mins ago. Girls outperform boys 7 hours ago. PM Modi rode to power on promise of reducing fuel prices, why is he unable to curtail them, asks Rahul Gandhi 6 hours ago.

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