India’s Government Wants to Tax Crypto-Traders
India’s government has sent out tax notices to thousands of cryptocurrency traders. The notices require individuals participating in crypto-related business to pay taxes on their capital gains. Just prior to sending out the notices, the country’s Income Tax Department conducted a nationwide survey to assess crypto-related activity. One of the main purposes of the survey was to determine the patterns of crypto-trading, according to an investigation specialist.
The findings of the survey indicated that approximately $3.5 billion worth of crypto-trading had occurred in the country during a span of 17 months. Survey data also revealed that the majority of crypto-traders were involved in either the jewelry business or real-estate. Previous surveys found quite a few exporters, textile traders, and youngsters engaged in the country’s crypto-market as well.
Comprehensive, Nationwide Crypto Survey
Data for the country-wide survey was taken from 9 crypto-exchanges operating in Bengaluru New Delhi, Mumbai, Hyderabad, Kochi, Gurugram, and Pune. Koinex, Zebpay, VirWoX, and Localbitcoins are some of the country’s most active exchanges. India’s government also ordered its tax department to obtain more information regarding all the assets which crypto-investors currently possess, including their sources.
According to survey data, there were approximately 2 million entities registered on the country’s crypto-exchanges. An estimated 400,000 of these entities were found to be actively engaging in crypto-trading. Now, in addition to the tax notices that have been sent, India’s government has also been monitoring these accounts in order to prevent tax evasion.
Crypto is Very Popular in Bollywood
Many famous actors and actresses from Bollywood, which is India’s version of Hollywood, seem to have profited from cryptocurrency investments. Perhaps the most famous Indian actor, Amitabh Bachchan, has reportedly made millions of dollars through crypto. Other famous Indian icons who might also have also made it big in the cryptosphere include the gorgeous Nargis Fakhri and Shilpa Shetti.
Since these entertainers are among the nation’s High Net Worth Individuals (HNWI), India’s government will definitely hit them with tax notices, considering that most Indian icons and celebrities have publicly declared their love for crypto.
Warnings from India’s Government
Although India’s government is now looking to tax crypto earnings, it has issued several warnings about the dangers of investing cryptocurrency. A few Indian authorities have even compared cryptocurrencies to Ponzi schemes. The country’s finance ministry is thinking of placing certain types of restrictions on digital currencies, perhaps through new regulations. Countries like South Korea have been attempting to ban all kinds of crypto-related activity, and this has caused a major uproar from its citizens.
As India and the rest of the world continue to deal in crypto, it would be nice to see governments and their citizens find a happy medium. This might seem like wishful thinking given that both parties are almost never satisfied with each other.