The Central Government has sent a tax notice to thousands of people who have been deployed in cryptocurrencies, including bitcoin. According to the information provided by the Income Tax Department, the survey conducted across the country has shown that in the past 17 Months, transactions of $3.5 Billion have been in cryptocurrencies. After this, the decision was taken to send a notice to those investing in it. These notices have been sent after collecting data from 9 exchanges including Pune, Bengaluru, Mumbai, and Delhi.
Tax officials said that those who invest in Bitcoin and other virtual currencies include Tech-Savvy Young Investors, Real Estate Players, and Jewelers. Considering that governments around the world are trying to rein in the business of cryptocurrencies, governments believe that through this, measures are being explored to avoid the use of black money and to avoid tax. Not only that, this issue can be discussed in the G20 summit in Argentina in March.
Explaining that the people who have invested in the cryptocurrencies on behalf of the government have been instructed several times that this money is like risky schemes and the government will not be responsible for this. However, there is no restriction on this directly. According to estimates, about 200,000 people transit in cryptocurrencies every month. Director General of Income Tax Department of Karnataka Balakrishnan said that these notices have been sent after analyzing the pattern and number of people joining the virtual currency trade.
Thus, on one side there has been a blooming response in terms of adopting the virtual currency. But in India, as emerging nations is looking to it as a suspicious way of trading. The government isn’t totally against the virtual currency, but they are cautiously making the movement to bring some clarity in the transactions on the landmark of recent reforms such as GST.