India to stop tax evasion though Bitcoin Exchanges

Income Tax Department Visit Bitcoin Exchanges

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According to the report gotten from India’s largest news agency, the Press Trust of India (PTI), several investigative teams from the Indian Income Tax Department have today jointly visited the premises of nine bitcoin exchanges in order to conduct ‘survey operations’ on suspicion of alleged tax evasion.

In the Indian Income Tax Act, under section 133A, the survey operations enable the tax investigators to collect “evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others,” the report cites official tax authority sources as stating.

Nine unnamed bitcoin exchange were visited during the coordinated operation by the multiple teams to stop tax evasion in a number of cities, which include Delhi, Bangalore, Hyderabad and Kochi, etc. The plunging is seen as the first major operation by Indian Tax Department against bitcoin exchanges, coming at a time when bitcoin prices continue to break record highs – up over 1,700% since the turn of the year.

Earlier this year, most Indian bitcoin exchanges initiated a self-regulatory body to regulate AML and KYC norms for users and adopters as regulators and authorities continue to remain vague over regulatory future or clear guidelines for the bitcoin exchange industry. In November, India’s Supreme Court called on authorities and various ministries to draft legislation to “regulate the flow of Bitcoin” in India’s promising and surging bitcoin ecosystem.

In respect of this, the CCN has reached out to multiple bitcoin exchanges in India for their comment.

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