Are you an Indian citizen and worried about the tax on your crypto investment? Or wondering if you should pay taxes and declare it in your financial year tax filing?
If you are still in the thinking mode, this article is for you. A couple of months ago we got the confirmed news that officials from Income Tax department visited the offices of Indian exchanges ZebPay, Unocoin, Coinome and a few others and collected a lot of information regarding the users who are trading cryptos.
Earlier, the news was that only high ticket users would be getting a summon from the Income Tax department. In fact, a close friend of mine who has traded cryptos worth roughly around Rs 50 lakhs in past year and a half, got a form from ZebPay to fill up.
Everything sounded alright until recently, many Individuals who have 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 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 users who have received the notice have been asked to meet the officials within one week of time along with the list of documents. One of the CoinSutra users shared the email with us but has requested not to be named.
Here is the list of documents and details that users are being asked to submit:
Well, a summon like this comes as no surprise. After the income tax officials visited the exchanges mentioned above, most of the high values crypto investors from India were expected to receive notifications. What is surprising here is that people with a ticket size of less than $10000 (less than six lakhs) have also received such notifications.
Do not worry if you are one of those users who has received a notice from the Income Tax Department regarding your crypto investment and trading. You are not alone. If you have 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.
Also, if you have not paid income tax on your Bitcoin and crypto gain (once you have sold it), you should speak to a chartered accountant or financial advisor and get your book straight.
If you need help with filing income tax for your crypto investment or profit, or need professional advice regarding this summon, use the contact form and CoinSutra team will connect you to few experts who will guide you in the right direction.
It would be better if the Indian government comes up with a regulation for crypto investors and traders instead of keeping everything in the grey area. I’m hopeful that we will have some concrete rules and regulations in place before the end of 2018. If not, it will be a tough time for the young Indian enthusiasts who are not as savvy when it comes to tax calculations.
Have you received any such notification from Tax department? Have you already visited the tax authority? Do share whatever you can, as it will help other members who are not very comfortable with such paperwork.
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