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IT department to slap notices to HNIs for tax evasion in Bitcoins

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New Delhi: The Income Tax (IT) Department is set to issue notices for suspected tax evasion to over 4 lakh high networth individuals (HNI) across the country who have been trading and investing in bitcoins.

In this regards the officials of the IT department had last week carried out surveys at nine exchanges dealing in virtual currencies to look into instances of tax evasion.

 

 

One of senior IT officials confirmed that of the estimated 20 lakh entities registered on these exchanges, over 4 lakh were operational and were carrying out transactions and investments in virtual currencies.

The survey operations were undertaken for gathering evidence for establishing the identity of investors and traders, trace the transactions undertaken by them and identify counter-parties and bank accounts used by them.

 

 

The investigation wing of the IT department in Bengaluru, which supervised the operations, has now dispatched the information of individuals and entities found these databases to eight other such wings across the country for detailed investigations.

Those individuals and entities whose records were recovered by the department are now being probed under tax evasion charges. Notices are being issued and they will have to pay capital gains tax on the bitcoin investments and trade, a senior official said.

 

 

The notices to HNIs and their business entities will first seek their relevant financial details and subsequently establish if there is a case for raising a tax demand.

As bitcoins or virtual currencies (VCs) are illegal and unregulated in the country as of now, the IT department has taken action as per the existing provisions of the Income Tax Act, officials said.

 

 

A survey action under the IT law pertains to the tax officials making a surprise visit to the business premises of the party under action but not their residential ones.

 

IT department to send notices to 4 lakh HNIs for tax evasion in Bitcoins trade:

 

The action has been initiated in view of the sudden surge in the value of bitcoins which is expected to have led to huge capital gains for individuals and business entities registered for the purpose.

 

 

Suspected black money being converted into white, post-demonetisation, through the use of bitcoins was also under the department’s scanner, officials said. Earlier this month the value of a bitcoins had leaped to a phenomenal USD 20,000 from USD 10,000 at the start of the year.

Bitcoin, which is a virtual currency, is not regulated in the country and its circulation has been a cause for concern among central bankers the world over for quite a while now.

 

 

The Reserve Bank of India (RBI) has also cautioned users, holders and traders of virtual currencies. The government has also said that it does not recognise ‘crypto-currency’ as legal tender in India.

Minister of State for Finance Pon Radhakrishnan on Monday informed the Lok Sabha that the government does not maintain any data related to virtual currencies such as Bitcoin.

 

 

In a written reply, Radhakrishnan also said a committee constituted by the Department of Economic Affairs to take stock of the present status of virtual currencies in India and globally has submitted its report.

The committee had been asked to examine existing global regulatory and legal structures governing virtual currencies and suggest the framework for regulation of these currencies, the minister said.

 

 

The minister was replying to a question whether crypto- currencies such as Bitcoins are used increasingly during the past few years and if the government has received any complaint regarding misuse of virtual currencies.

The minister further said the Reserve Bank has also cautioned from time to time to users, holders and traders of virtual currencies about the potential financial, operational, legal and security related risks.

 

Also read Post demonetisation about Rs 5,000 cr spent on printing of new 500 notes:

 

Business

Apple is giving a huge discount on its gadgets: Details inside

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If you want to buy an iPhone and were waiting for a nice offer, then we have a piece of good news for you! Amazon Summer Sale May 2022 has begun and they are offering major discounts on various smartphones, laptops, and smart TVs, among others.

The sale is live now on the e-commerce platform with no-cost EMI options and exchange discounts on various products. In addition to this, Amazon has also partnered with several banks including ICICI, Kotak Bank, and RBL so that customers get instant discounts of up to 10% using their cards and EMI transactions.

Customers can easily enjoy this summer sale and get massive discounts on iPhones. They can also compare prices on Flipkart Big Saving Days Sale 2022 before making a purchase.

 

Amazon Summer Sale May 2022: Discount offer on iPhone 13 

Apple’s coveted phone model iPhone 13 in the 128 GB storage model will be available during the Amazon Summer Sale May 2022 for Rs 64,900. The MRP of the phone is Rs 79,900. This means that the customers will be able to enjoy a discount of up to Rs 15,000 on the purchase of the iPhone 13.

If you have an old iPhone in working condition then you will also be eligible to receive another additional discount worth up to Rs 17,000 on the iPhone 13.

Buy at Rs. 64,900 (MRP – Rs. 79,900)

Features of Apple iPhone 13 

The iPhone is powered by an A15 Bionic processor with 6 core CPU. Apart from this, it has 16 core neural engines. With the iPhone 13, up to 512 GB of storage will be available. The iPhone 13 has a 6.1-inch Retina XDR display with 1000 nits brightness.

The iPhone 13 has a 12-megapixel dual rear camera setup. This time a new wide-angle camera has been given, whose aperture is f/1.6. With this, there is support for sensor optical stabilisation. Night mode has been made better than before. The second lens is also 12 megapixels ultra-wide and has an aperture of f/2.4.

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