Bit Confused with
Bitcoin ?
====================
Today’s Times of India , carries following news :
I-T
notices to 4-5 lakh individuals trading in bitcoins across the country
Widening its probe
into bitcoin investments and trade, the Income Tax (I-T) department is set to issue notices to 4 to
5 lakh high net-worth individuals (HNI) across the
country who were trading on the exchanges of this unregulated virtual currency.
The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion.
The department, official sources said, found that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were "operational" and indulging in transactions and investments.
Sources told PTI that the Bengaluru investigation wing of the tax department, which supervised last week's operations, has now dispatched the information of the individuals and entities found on these databases to eight other such wings across the country for a detailed probe.
"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 privy to
the operation said.
About 4-5 lakh HNIs and their businesses are being issued notices which will first seek their relevant financial details and subsequently establish the tax demand, if any, he said.
As the bitcoins or the virtual currencies (VCs) are illegal and unregulated in the country as of now, the IT department has taken action as per the existing provisions, they said.
The survey operations conducted last week, under section 133 A of the Income Tax Act, were undertaken for "gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties, related bank accounts used, among others," they 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. The trigger for the action is understood to be the huge spike being registered in the value of bitcoins and other virtual currencies in the recent past.
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,
there was a spurt in the value of a bitcoin. It rose from under $10,000 at the
start of the year to close to $20,000, before a sharp 20 per
cent plunge within hours.
Bitcoin, 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.
I believe that ,
although those HNIs might not be altogether “ happy “ to receive these IT
notices ( for paying up Capital Gain Tax ) , I cannot escape the feeling that they would heave a huge sigh of relief !
Ditto with those
Bitcoin trading exchanges !
Won’t these notices amount
to “ legalize “ owning and trading of Bitcoins ?
All the while when SEBI wants RBI to declare Bitcoins
illegal !
And RBI wants Government
to decide whether Bitcoins are
legal or not !
Would you say , a
classic case of , “ Passing
the Buck “ ?
Apparently , no one
wants to “ bell the cat “ !
Unless – and until –
someone puts the ball in the court of the Supreme Court by filing a PIL to declare Bitcoin
illegal ?
Of course, those 4-5 lakh HNIs would love nothing
better !
And our Ministers will
get one more opportunity to decry “ Judicial Activism “ !
Dear Shri Arun Jaitleyji :
In my following email (
06 Dec ) , I had urged you to get the
President to issue an ORDINANCE
, declaring Bitcoin as illegal and banning owning / trading in Bitcoins :
What
is holding back ?
It will be futile to issue such an ORDINANCE once IT department issues those
notices !
Please hurry
up !
19 Dec 2017
www.hemenparekh.in
/ blogs
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