If you have earned by investing here, then be careful! Income tax department can come anytime
Crypto currency in the country There are millions of investors in. That too when crypto currency is not valid in India. Now the government has started strictness on earnings by investing from crypto currency. According to the information received, the income from crypto currency is now under investigation by the Income Tax Department. The Income Tax Department has sent e-mails to thousands of people who invested and earned in crypto currency, but did not inform about the income from it in their returns. Official sources said that these transactions are related to assessment assessment in 2023-24 and 2024-25.
Doubt of tax evasion and money laundering
The Central Board of Direct Taxes (CBDT) suspects some ‘high risk’ people to be involved in tax evasion and money laundering, who are potentially use ‘unattainable’ income to invest in virtual digital assets (VDAs) ie Crypto currency. Sources said that the Income Tax Department has sent e-mails to thousands of defaulters and asked them to file updated income tax returns (ITR), who have not announced the income or have been informed incorrectly due to crypto transactions. According to Section 115 BBH of the Income Tax Act, in addition to tax at the rate of 30 percent on the income from crypto transactions, surcharge and cess are also levied. This provision does not allow any cost deduction except the cost of purchase. In addition, the damage caused by crypto investment or business is not allowed to be disposed of against any other income or to be taken forward in later years.
Crypto’s income hidden
According to sources, the analysis of the data has shown that a large number of people have violated the provisions of the Income Tax Act by not filing the ITR schedule VDA (income from Crypto) and paying tax at a low rate on earned income or claiming cost index. It is believed that the ITR filed by taxpayers is being verified by the department with ‘Tax Cut at Source’ (TDS) details filed by various cryptocurrency exchange and the defaulters can be identified for further ‘verification or check’. This step of CBDT is based on the concept of the Income Tax Department ‘first taxpayers’.
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