After surveying major cryptocurrency exchanges in the country on December 13, the Income Tax Department of India is all set to send notices to 400-500K HNIs who are involved in trading Bitcoins in India.
Following surveying nine major cryptocurrency exchanges in the country last week to look at the possibilities of tax evasion, the taxman is now all set to issue noices to lakhs of high networth individuals (HNI) engaged in Bitcoin trading in India.
According to sources, the survey revealed that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were “operational” and indulging in investments. “Those individuals and entities are now being probed under taxes evasion charges.
Notices are being issued seeking their financial details and, if tax demand can be established, they will need to pay capital profits tax on the bitcoin investments and trade, said a senior official privy to the procedure. So the Bengaluru analysis wing of the taxes department, which supervised previous week’s operations, has now dispatched their information to eight other such wings across India for a detailed probe.