India Comes After Bitcoin Investors

February 8, 2018 Taxation in India

bitcoin taxNEW DELHI – India’s government is taking steps to ensure that investors in Bitcoin and other cryptocurrency do not shirk their tax obligations.

In a news release issued on February 6th it was disclosed that the Direct Tax Department of India has sent out over 100 000 letters to national taxpayers who may have made an income from trading cryptocurrency without declaring it for the purpose of taxation.

It was stated that many taxpayers who have invested in cryptocurrencies do not know how to properly file their incomes on the coins, and that there may not be enough clarity regarding the tax treatment of the currency.

The government and tax departments of India are yet to issue any official guidelines on the tax treatment of such investments.

The government is establishing a committee which looks at the future taxation and treatment of investments into cryptocurrency.

It is estimated that there are as many as 5 million cryptocurrency users in India.