March 17, 2020
By Anjali Kochhar
The Income-tax department of India is reportedly cracking down on cryptocurrency transactions of about 700 investors who are making big gains from investing without paying taxes.
Here is what you need to know:
- The tax authority has proposed to issue notice to the investors who have either omitted declaring crypto gains on their IT returns or have not filed tax returns at all, The Economic Times reported.
- “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,” a senior official from Central Board of Direct Taxation (CBDT) told ET.
- The investors not only include high net worth individuals, non-resident Indians, and startups but also students and housewives.
- As per tax officials, some people have gains exceeding Rs 40 lakhs. Taxpayers have also been treating crypto transactions differently on their tax returns with some declaring income as capital gains while others as business income.
- Finance Minister Nirmala Sitharaman announced a 30% tax slap on cryptocurrencies for the next fiscal year beginning April 1.
- Tax officials said that apart from imposing levies, the department may also seek penalties, which may go up to 50% over and above the tax.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.