Today’s Times of India ,
carries following news :
I-T notices to 4-5 lakh individuals trading in bitcoins across the
country
Widening its probe into bitcoin investments and trade, the Income Tax (I-T) department is set to issue notices to 4 to 5 lakh
high net-worth individuals (HNI) across the country who were trading on the exchanges of
this unregulated virtual
currency.
The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion.
The department, official sources said, found that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were "operational" and indulging in transactions and investments.
Sources told PTI that the Bengaluru investigation wing of the tax department, which supervised last week's operations, has now dispatched the information of the individuals and entities found on these databases to eight other such wings across the country for a detailed probe.
"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," a senior official privy to the operation
said.
About 4-5 lakh HNIs and their businesses are being issued notices which will first seek their relevant financial details and subsequently establish the tax demand, if any, he said.
As the bitcoins or the virtual currencies (VCs) are illegal and unregulated in the country as of now, the IT department has taken action as per the existing provisions, they said.
The survey operations conducted last week, under section 133 A of the Income Tax Act, were undertaken for "gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties, related bank accounts used, among others," they said.
A survey action under the IT law pertains to the tax officials making a surprise visit to the business premises of the party under action but not their residential ones. The trigger for the action is understood to be the huge spike being registered in the value of bitcoins and other virtual currencies in the recent past.
Suspected black money being converted into white, post demonetisation, through the use of bitcoins was also under the department's scanner, officials said.
Earlier
this month, there was a spurt in the value of a bitcoin. It rose from under
$10,000 at the start of the year to close to $20,000, before a sharp 20 per cent plunge within
hours.
Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause for concern among central bankers the world over for quite a while now.
Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause for concern among central bankers the world over for quite a while now.
I believe that , although those HNIs might not be
altogether “ happy “ to receive these IT notices ( for paying up Capital Gain Tax ) , I
cannot escape the feeling that they would heave a huge sigh of relief !
Ditto with those Bitcoin trading exchanges !
Won’t these notices amount to “ legalize
“ owning and trading of Bitcoins ?
All the while when SEBI wants RBI to declare Bitcoins illegal !
And RBI wants
Government to decide whether Bitcoins are legal or not !
Would you say , a classic case of , “ Passing
the Buck “ ?
Apparently , no one wants to “ bell the
cat “ !
Unless – and until – someone puts the ball in the court
of the Supreme Court
by filing a PIL to declare
Bitcoin illegal ?
Of course, those 4-5
lakh HNIs would love nothing better !
And our Ministers will get one more opportunity to
decry “ Judicial Activism
“ !
Dear Shri Arun Jaitleyji :
In my following email ( 06 Dec ) , I had urged you
to get the President to issue an ORDINANCE , declaring Bitcoin as illegal and banning owning /
trading in Bitcoins :
Whatis holding back ?
It will be futile to issue such an ORDINANCE once IT
department issues those notices !
Please hurry up !
19 Dec 2017
www.hemenparekh.in /
blogs
Sir Bitcoin is the future and almost all the democratic nations have accepted it.
ReplyDeleteEven many stock exchanges in USA provides Bitcoins futures contracts.
It should be properly regulated but the idea of banning it in India will hinder India's development.
Just because old school economists aren't able to understand the tech and its dynamics India can't ban Bitcoins.
Please I urge you to not to hinder in bitcoin's acceptance in India.