Income Tax department turns heat on bitcoin exchanges across country, checks for evasion 

Income Tax department turns heat on bitcoin exchanges across country, checks for evasion 

Smart Planet

NEW DELHI: The income-tax authorities have conducted surveys on brokers of Bitcoin across the country in the first major swoop on virtual currencies owing to suspicion of tax evasion. 

The surveys on nine virtual currency exchanges in Bengaluru, Hyderabad, Mumbai, Delhi and Kochi are aimed at ascertaining the source of funds and tax evasion, if any, following recent reports of large-scale encashing of cryptocurrencies, a Central Board of Direct Taxes official told ET. 

Bitcoin price has crossed Rs 11 lakh in India, setting alarm bells ringing among the authorities. The Reserve Bank of India, which had earlier cautioned cryptocurrency users, recently issued another strong warning on virtual currencies. However, the government of India has yet to clarify its stance on the legal status of Bitcoins. 

China had clamped down on cryptocurrencies, directing its two largest bitcoin platforms, BTCC and OKCoin, to stop all trading operations. The surveys, the official said, are largely aimed at gathering evidence for establishing the identity of investors and traders, transactions undertaken by them, identity of counterparties and related bank accounts used. 

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