If you are from India and having Tax issue on your crypto investment? Or probably you’re thinking of if you should pay taxes and also disclosed it in your financial year tax filing?
If you are still yet to decide, this post is actually for you. Some month back we got news from a reliable source, stating officials from Income Tax department paid a visit to the offices of Indian exchanges ZebPay, Unocoin, Coinome and others and received a lot of information based on the users who are actually trading cryptos.
Lately, the news was that only high ticket users would be getting a summon from the Income Tax department. In fact, a very close friend who actually has traded cryptos worth approximately around Rs 50 lakhs last year and a half, got a form from ZebPay to fill up.
Things were alright until recently, many people who invested a small amount on cryptos have started getting notices from Income Tax department. People who are in ticket size of $5000-6000 have also have received the summon from tax authority in their cities and been asked to provide documents regarding their income for the last six years.
Indian crypto guys who have been given the notice, are told to report to officials within a week of time along with the list of documents. Some people who shared the email with us but has requested not to be named.
Here is exactly the list of documents and details they asking them to submit:
Seriously, this doesn’t seem to be surprised. After the income tax officials visited the exchanges aforementioned, most of the high values crypto investors in India were all expecting to receive notifications. What got people surprised here is that people with a ticket size of less than $10000 (less than six lakhs) have also received such notifications.
You’re nothing to worry about if you are one of those users who has received the notice from the Income Tax Department based on your crypto investment and also trading. Don thinks you’re alone. If you’ve been investing in Bitcoin or cryptos since 2015-2016, keep most of the data ready as you might be next one on the list to receive a summon from the Income Tax department.
Moreso, if you have not paid income tax on your Bitcoin and crypto profit (after selling it), you’re advised to talk to a chartered accountant or financial advisor and get your book straight.
If you needed help with filing income tax for your crypto investment or profit or need professional advice based on this summon, use the contact form, and we will connect you to few experts who will put you through.
Seriously, it could have been good if Indian government can think of regulation for crypto investors and also the traders rather of keeping everything in the drabness area. We’re hopeful that we will have some solid rules and regulations in place before 2018 out-out. If not, young Indian enthusiasts might experience tough time for who are not as savvy when it comes to tax calculations.
If possible, you received any such notification from Tax department? Have you reported to the tax authority office? Do share what you experienced, as it will help another visitor who is not very comfortable with such paperwork.
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