As Ethnews reports, 100,000 tax notices were recently sent to investors by the income tax authorities of India, as cryptocurrency is not considered legal tender in the country, but still requires taxes to be payed for any operations with it.
Sushil Chandra, the head of India's Central Board of Direct Taxes stated that there is a lot of people who have not declared the income they have made through investing in cryptocurrency, and those people have to pay taxes on the profit they made by investing, that is why the tax authorities have made a decision to send out the tax notices to investors.
We found out that there is no clarity on investments made by many people, which means that they have not declared it properly.
Head, Central Board of Direct Taxes of India
Indian citizens were actively using such cryptocurrency exchanges as Zebpay, Coinsecure, Coinome, Unocoin, and Bitxoxo, and all those exchanges voluntarily provided the information about crypto investments to the authorities. The total number of people who invested in cryptocurrency is estimated to be five million.