In India, tax collectors have been paying close attention to many of the different cryptocurrencies, especially those who made landslide profits, yet paid no taxes. They are also planning to take this opportunity to review the accumulative wealth of these individuals, and not just their virtual coin earnings.
The CEO and co-founder of Unocoin, an exchange for various cryptocurrencies, had this to say: “So apart from Bitcoin and other currencies, all the mobile and immobile properties of an individual who has made significant gains in cryptocurrencies will be under scrutiny.”
Another official in the cryptocurrency world spoke out, but requested that he would remain anonymous, made some statements as well. He said that authorities of the income tax department have stated that they will probably first look into those who used cryptocurrency to purchase other assets as well. In other words, all the accumulated wealth of the last several years, for a great many people, will be under the scrutiny and watchful eye of tax collectors.
Several news organizations have attempted to contact tax department officials, to get their inside story on this news. However, those attempts have not yielded any information, as they are unreachable. It is assumed that, in a manner of this importance, that news reporters will continue to attempt to make contact and when that contact is made, a brief will be released.
Another statement was recently released, from a lawyer who represents some of the exchanges of Indian Bitcoin. “The top people who have made maximum gains are the ones who are going to be under the scanner. That is because the number of people showing gains on these virtual currencies is miniscule. And even now, there is no clarity on how the tax treatment of these gains should be.”
The recent spike is hard to miss. As of November 1, one Bitcoin was worth an estimated Rs4.55lakh, or just over $7000. By December 14, that value had jumped to almost three times as much, at Rs13.80lakh. A short week later, it was back down to Rs12.05lakh.
Because of this spike, the government has become concerned with the central bank of India. Not long ago, a team of income tax officials visited Bitcoin exchanged to investigate. These exchanges are located in Mumbai, New Delhi, Hyperabad, Bengaluru, and Pune. The results of the surveys they conducted mean that the department will be serving notices to about half a million investors.