India’s income tax department has reportedly identified about 700 cryptocurrency investors who have failed to pay taxes on high-value crypto transactions. “We have a long list of people who were transacting in crypto assets but were not paying tax,” said an official with the country’s Central Board of Direct Taxation.
Indian Tax Authority Takes Action on 700 Crypto Investors
India’s income tax department is reportedly cracking down on non-payment of taxes from cryptocurrency gains. According to the Economic Times, about 700 crypto investors are being inspected by the department. The authority also proposed to send notices.
According to income tax officials, most people in this group have either not declared crypto-gains on their taxes or not submitted tax returns. These people could be subject to 30% tax, interest, and penalty.
The publication was informed by a senior Indian Central Board of Direct Taxation official (CBDT).
There are many people that were trading in crypto assets, but not paying taxes. In the beginning, we have only shortlisted approximately 700 transactions that are subject to tax.
It includes non-resident Indians and high net worth people, as well as students, housewives, and startups. Some have not yet filed their tax returns.
Some people who have made more than Rs 40 Lakh haven’t filed any tax returns, or have declared no income. Moreover, taxpayers have been treating crypto transactions differently on their tax returns — some declaring income as capital gains while others as business income.
Indian Finance Minister Nirmala Sitharaman presented in her budget speech last week a 30% capital gain tax on cryptocurrencies. This would be for the following fiscal year. In the budget, it was stated that no matter how long a person has owned crypto assets, a flat tax would be applied.
Officials from the Tax Department stated that in addition to complying with tax regulations outlined within the Budget, they may also be seeking penalties which could go as high as 50% above and beyond the tax.
J. Mohapatra, Chairman of the CBDT spoke to The Publication last month. B. Mohapatra, the chairman of CBDT said that a significant number of cryptocurrency investors hadn’t been declaring their income. The income tax department also has sufficient data. The department would take enforcement actions after March 31, he said.
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