There is a bad news for high value crypto investors who have refrained from paying taxes over their investment gain. According to Economic Times (ET) report, India’s income tax department has started probing nearly 700 high value crypto investors on the ground of non-payment of tax.
The IT department has already started working on issuing notices to these investors. The IT department claims that most of these investors have either failed to mention crypto gains in their tax returns or have failed to file the tax returns all together.
These tax defaulters will now not only face 30% tax on their crypto transaction but also potential penalty over tax evasion.
As per the IT officials cited by the ET, there are instances where capital gain tax has surpassed INR 40 Lakh and still the users have never paid the income tax before.
The list of nearly crypto investors mostly constitute not only HNIs, startups but also housewives and students. Most of the housewives and students have never filed a income tax return.
Although not confirmed the income tax department is likely to send the notice to these investor either before or after 31st March.
Taxation over crypto investment has been a hot topic ever since Indian finance minister Nirmala Sitharaman announced during her budget speech that any sizable income generated from crypto investment will charged with 30% tax.
Despite bringing cryptos under taxation, Indian government has categorically said that cryptos or digital assets won’t enjoy any legal status.
Cryptos have never actually enjoyed a warm relation with Indian government, with Indian government at one time claiming that cryptos are nothing but a ponzi scheme. Even the banking regulator RBI has always maintained hardened stance against digital assets.
Despite the relentless regulatory pressure, the buzz and hype around cryptos around refuses subside among Indian investors. This holds especially true for young Indian investors who seem to swept by investment possibilities in cryptos.