Earlier, we have reported on the IT Survey conducted across India by the Income Tax department. Coinsecure has today released an official statement with regards to it.
Update on IT Survey
Coinsecure’s Delhi and Bangalore offices were surveyed by the Income Tax Department. Officials tried to gauge and comprehend the ‘state of Bitcoin’ in India.
The officials made an attempt to try and understand the causes, repercussions, and taxability as Bitcoin price gained recently.
Discussions to understand Bitcoin and cryptocurrencies and their users was undertaken. The officials had requested data to try and analyze taxability of Bitcoin.
Overall, it was an extremely routine exercise. All exchanges in India have gone through the same process cooperating and coordinating with the Tax authorities.
The recent price surge of Bitcoin to more than $16000 seems to have led to this drive. People engaging with cryptocurrencies should carry necessary due diligence. Tax evasion is an offense.
It is now clear that the safest way to purchase Bitcoin in India is from exchanges and the like. Always ensure that you have shared the correct KYC details with your exchanges.
Most Importantly this IT Survey can be viewed positively. With the applicability of to taxation laws getting more closer, a recognized status for Bitcoin in India is not far off.
It is highly recommended to check with your tax consultants regarding tax implications.