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 Bitcoin.com, 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.

Source: https://news.bitcoin.com/


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