India’s taxman is seeing a new opportunity in the escalation of bitcoin prices. The income tax department has for over quite some time paid much focus on cryptocurrency exchanges across the country. And that was in a bid to determine and hold into account all those that benefited from the recent boom yet declined to pay taxes on the money they accumulated.
Tax officials are looking forward to exploit this opportunity in getting a closer look at the overall wealth that was accumulated by given people, alongside every aspect of the gains that were made in line with the virtual currencies.
The co-founder and CEO of Unocoin, Sathvik Vishwanath opined, “So apart from bitcoin or other currencies, all the mobile and immobile properties of an individual who has made significant gains in cryptocurrencies will be under scrutiny.”
There was also another official of a virtual currency exchange who begged to speak from a standpoint of anonymity that disclosed a critical point. According to him, the income tax authorities will be setting out on an expedition that will be see them succeed in their quest to assess whether or not the gains from the cryptocurrency boom were used in making purchase of other assets. A person familiar with the matter revealed that there might be those instances where it will be necessarily to scrutinize the wealth accumulated over a number of years.
A number of news reporters have been making efforts to get in touch with the income tax department officials in a bid to get them to crack up regarding the matter. Unfortunately, they declined to comment.
Matters will be working on the principle of placing all those at the top (the ones that made more in terms of gains) under the scanner. But a lot of people have been seeking obtain an explanation in line with the possible reason.
There have people indicating that the gains on virtual currencies is minuscule. To this point in time uncertainty continues to blanket the issue about how the tax treatment of these gains should be.