Nearly Rs 100 crore invested in Bitcoins is from undisclosed sources: Taxman Sushil Chandra

Last Updated: Tue, Feb 06, 2018 18:46 hrs
Income Tax (PTI Photo)

After the budget announcement and comments from the Secretary of Department of Economic Affairs, an official comment on the taxability of bitcoins has come up from The Chairman of Central Bureau of Direct Taxes.

Sushil Chandra, the Chairman said that those who have earned bitcoins or have made money from investments in crypto-currencies would have to pay tax. He also revealed that the department had issed one lakh notices to people who had invested in cryptocurrencies like Bitcoin without declaring these in their income tax returns.

Chandra, who was speaking at an Assocham conference in Delhi, called the tax department's action as a survey.

In an interview to a television channel, Chandra had said that profits on bitcoin trading and mining would be taxed for capital gains. He said that nearly Rs 100 crore was invested from undisclosed sources.

The previous week, Subhash Chandra Garg, the Secretary of the Department of Economic Affairs said that the ministry was considering a policy. He in fact likened crypto-trading to dabba-trading. Read the story here.

The official comments may add to regulatory pressures on miners, traders and exchange houses in the country. But there has been support for crypto-currencies too. Rana Kapoor, CEO of Yes Bank in an interview with India Today was quoted saying that cryptocurrencies are forever in India.

"We are living in a world of money-laundering and KYC. Its only a question of interventions, which needs to be synchronized and synergized with regulations," he said.

Unocoin tweeted that it is launching multiple cryptocurrencies. This, in a period of heightened regulatory pressure. Unocoin, Zebpay, and Coinsecure, the three leading exchanges in the country are yet to reply to the tax-claims so far.

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