After extra ordinary performance of Bitcoin in International and National treading, Now The Income Tax department is set to issue notice to high net worth individuals. The Income Tax department is closely observing the around five lakh individuals who were involve in treading on the exchange of Cryptocurrency Bitcoin.
Income tax Department found that around 20 lakh registered entities which were practicing treading and exchange of Bitcoin. Out of this about 5 lakhs were operational and now set to the notice. The departmental sources said about the conducted surveys at nine such treading and transaction last week to check instances of tax evasion. Bengaluru investigation wing of the income tax department supervised the last week survey and prepared the information of all entities and individuals found on these databases to eight other such wings across India for detail probing. “Those entities and individuals whose records were recovered by the department are now being probed under tax evasion charges. Notice are being issued and they will have to pay the capital gains tax on the bitcoin investment and trade,” a senior official privy to operation said.
The Income Tax department under Section 133A of the Income Tax Act, operated the survey last week, where undertaking for gathering evidence for establishing the identity of traders and transaction under taken by them, identity of counterparties, related banks account used, among others. Based on this survey about five lakh entities and individual are being issued notice which will first seek their relevant financial details and subsequently calculate the tax demand.