A few days back, the Indian Income Tax Department purportedly surveyed probing significant digital currency exchanges based in the nation to investigate cases of money laundering. Today, the IT department has reported that they will issue notification to five lakh HNIs that participated in high volume cryptocurrency trading on these exchanges.
The Department also informed that they will assess these people and entities for cases of tax evasion. The notification conveyed will tell the individuals of any pending capital gains tax that is relevant on their Bitcoin transactions. The database which contains details of every entities will also be shared with other government bodies for a more nitty gritty investigation.
A senior official stated:
“Those individuals and entities whose records were recovered by the department are now being probed under tax evasion charges. Notices are being issued and they will have to pay capital gains tax on the bitcoin investments and trade”.
The trigger for the activity is comprehended to be the immense spike registered in the price of Bitcoin and other cryptocurrencies in the last few days. The authorities told that, laundering of black money into white using Bitcoin was always under the scanner of the Income Tax Department since demonetization.
Earlier this month, there was a spike in the price of a Bitcoin. It skyrocketed from under $10,000 from the beginning of the year to nearly $20,000, it plunged within hours. Bitcoin, a cryptocurrency, isn’t managed in the nation and the circulation has been a reason to worry among major bankers around the world.