Skip to main content

Trading in bitcoins under taxmen, Enforcement Directorate lens

Trading in bitcoins under taxmen, Enforcement Directorate lens
Investments in cryptocurrency have come under the radar of tax authorities and investigation agencies amid concerns that they could have become conduits for illicit flows and the movement of black money.
The Special Investigation Team (SIT) on black money appointed by the Supreme Court has expressed worries about cryptocurrency and suggested curbs on their trading in its draft report.
“There are concerns on the way it operates.Some unaccounted money could be flowing into these,” said an official aware of the matter. The team is likely to submit its final report in a month, the person said.
Policy makers are looking at the issue closely and are expected to take a call shortly, another government official said.
Income-tax authorities and the Enforcement Directorate are also examining investments in cryptocurrency after the Indian government demonetised Rs 500 and Rs 1,000 notes in November last year. “There are issues with large investments flowing into this currency,” said a senior tax department official Bitcoin, the most popular virtual currency, traded at $3,969 on Wednesday, down from highs of $4,359 a week ago.
India has not yet taken a call on how it wants to treat cryptocurrencies, but the Reserve Bank of India (RBI) has cautioned against them. “As regards non-fiat cryptocurrencies, I think we are not comfortable,” RBI executive director Sudarshan Sen had said on September 13.
Any user, holder, investor or trader dealing with virtual currencies is doing so at their own risk, RBI cautioned on its website in February. They pose potential financial, legal, customer protection and security-related risks, RBI said.
MIXED GLOBAL REGIME
China clamped down on cryptocurrencies this month and directed its two largest bitcoin platforms--BTCC and OKCoin--to stop all trading operations, putting the spotlight on fears over the electronic currency. The National Internet Finance Association of China, created by the central bank, warned on its website last week that such currencies are “increasingly used as a tool in criminal activities such as money laundering, drug trafficking, smuggling, and illegal fundraising.”
Japan recognises the currency and some other major markets such as the US and Canada have regulations in place.
The Econoics Times, New Delhi, 21th September 2017

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s