India’s Income Tax Authority Sends Letters Probing Crypto Owners

Asia Blockchain Review
August 18, 2019
India’s Income Tax Authority Sends Letters Probing Crypto Owners

The Office of the Deputy Director of Income Tax under India’s Ministry of Finance has reportedly been sending out letters to Indian crypto owners asking a long list of probing questions about their dealings with cryptocurrencies.

According to, Twitter handle Indiabits recently shared one of the letters comprising 26 questions, which ranged from sources of income to the names of the cryptocurrencies that taxpayers deal in along with details regarding hardware wallets.

IMC Submits Crypto Report and Draft Bill 

The letter also warned that a fine of up to 10,000 Indian rupees (~US$140.90) would be levied for willful omissions under section 272A of the Income Tax Act, 1961.

While the Indian government has not yet decided whether it will regulate or ban cryptocurrencies, the interministerial committee (IMC) tasked with studying and providing recommendations on digital assets has submitted a report with an accompanying draft bill to the government. 

Finance Minister Nirmala Sitharaman recently acknowledged, however, that she has not reviewed the report and bill in detail.

Lobbying to Prevent the Indian Crypto Ban

India’s crypto community has been ramping up efforts to engage lawmakers and show them the fallacies inherent in the IMC report, in an effort to convince the government not to go through with drafting the cryptocurrency ban. 

For the time being, cryptocurrencies in the country remain unprohibited, as recently confirmed by Anurag Singh Thakur, Union Minister of State for Finance and Corporate Affairs.

“Tax laws in India are applicable irrespective of the legal status of income,” explained Anoush Bhasin, founder of Quagmire Consulting, which specializes in crypto tax solutions.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    2020: Managing the Expectations of Blockchain Related Hype
    As blockchain technology evolves, the ecosystem for a lot of things is advancing as time goes by. So...

    February 22, 2020

    Is Blockchain the Saviour that Healthcare Needs?
    2019 saw almost USD$4 billion worth of healthcare data breaches, but it's not all doom and gloom, as...

    February 19, 2020

    MESTECC Launches 130 Technology Initiatives for 2020
    In line with the “Own It. Do It. Ace It.” campaign, the Ministry of Energy, Science, Technology, Env...

    February 17, 2020

    Australian Government Unveils National Blockchain Roadmap
    The national blockchain roadmap is all about progressing the country towards a blockchain-empowered ...

    February 17, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us