Income Tax Department Raids Bitcoin Exchanges Across India

The Income Tax Department of India feels that Bitcoin, is turning into a mode for laundering money.

Before the demonetization stunt, a Bitcoin was worth Rs. 23,000 and now it has already crossed the Rs. 12 lakh mark. Realizing this, the Income Tax Department is seriously behind the tax aspects of this and other cryptocurrencies.

The department raided multiple exchanges across the country. Nine exchanges came under the radar of the Bengaluru investigation team. Survey is conducted across Delhi, Bengaluru, Hyderabad, Kochi and Gurugram regarding Bitcoin and exchanges.

The spokesperson name Surbhi Ahluwalia told,

“We are looking at collecting information about modus operandi of bitcoin exchanges, investors, their source of investment and possibility of collecting tax, gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others.”

The Department is also taking a gander at whether cryptocurrencies should be declared in ITR. And the concern for the financial and security agencies is that wallets cannot be detected and hence could be used for illegal purposes like funding extremist organizations. Cyber specialists are additionally indicating different uses of cryptocurrency like political funding.

Earlier, the apex bank of India announced that they have not given license to any organization to deal in these digital currencies. And also, the users who are trading with these were own their own. RBI also warned that these financial instruments were highly risk prone.

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