February 7,2018:
CBDT Chairman said that,"We found out that there is no clarity on investments made by many people which means that they have not declared it properly".
Income Tax Department has issued about one lakh notices to people who have invested in crypto currencies like Bitcoin and have not declared it in their income tax return, CBDT (Central Board of Direct Taxes) Chairman, Mr Sushil Chandra stated at an ASSOCHAM event in New Delhi on Tuesday.CBDT is the statutory body that provides inputs for policy and planning of direct taxes in India.
He further added that,"People who have made investments (in crypto currency) 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".
Chandra pointed out that Income Tax Department had conducted various surveys on crypto currency exchanges to find as to how many people are regular contributors, how many have registered themselves and how many have done trading on that platform.
Government has time and again stated its tough stance against trading in Bitcoin and the other cryptocurrencies. Besides rendering them as illegal tender, the government has taken initiatives to regulate earnings made by bitcoin traders.
On Monday, Report by News Agency Reuters quoted finance ministry to say that government is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in "crypto-assets".
Panel set up by Government to look into issues relating to cryptocurrencies is expected to submit its report in the current fiscal year, ending on March 31.
In this years Budget Speech on February 1,2018, FM Arun Jaitley had said that the government does not consider cryptocurrencies legal tender and will take all measures to eliminate use of crypto assets in financing illegitimate activities or as part of payment system.
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