Press Trust of India on its Twitter handle recently posted an update saying Income Tax Department of India recently conducted a survey at major Bitcoin exchanges in India on suspicion of alleged tax evasion. It is said that various teams of the department visited the premises of around 9 Indian Bitcoin exchanges.
Moneycontrol reports that the survey was conducted on basis of the section 133A of the Income Tax Act, gathering of evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others.” It means the exchanges might have to show their books of accounts and other documents which also includes KYC documents submitted by the users.
Zee News, recently on their TV channel mentioned that ZebPay was one of the exchanges where the sleuths from Income Tax department raided. It is said that the survey was conducted all around the country including the following cities: Delhi, Bengaluru, Gurugram, Kochi, and Hyderabad. However, there is no official update from the exchanges or the Income Tax department on the same.
Bitcoin and other cryptocurrencies are the best digital currencies and are not regulated by the Reserve Bank of India. Since it isn’t regulated, one can easily convert their black money into Bitcoins and evade taxes. We are getting in touch with the exchanges for further information on this, we’ll keep updating as we get more information.