Last week India’s Finance Minister confirmed that Cryptocurrency is not a legal tender in India. Now IT Dept of India (Income Tax) has issued notices to 100,000 cryptocurrency investors in India.
Statement by Central Board of Direct Taxes chairman Mr. Sunil Chanda on notices to crypto traders:
People who have made investments [in cryptocurrency] and have not declared income while filing taxes and have not paid tax on the profit earned by investing, we are sending them notices as we feel that it is all taxable. We found out that there is no clarity on investments made by many people which means that they have not declared it properly, We have informed all the DGs (Director Generals of Income Tax) across India, they are issuing notices and so that would be taxed.
The government of India is trying their best to reduce the use of crypto payments in India.