Unaccounted crypto transactions of 700 users under IT scanner

economictimes.indiatimes.com:

New Delhi: High-value crypto transactions of about 700 investors have come under the scanner of the income tax department, which is now proposing to issue notices to them. These individuals or entities could face 30% tax, penalty and interest.Income tax officials said most of these cases involved users who have either skipped mention of crypto gains in tax returns or haven’t filed returns at all. “We have a long list of people who were transacting in crypto assets but were not paying tax. Initially, (we) have shortlisted about 700 transactions, where tax liability is very high,” a senior Central Board of Direct Taxation (CBDT) official told ET.

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Interestingly, apart from high net-worth individuals (HNIs), non-resident Indians (NRIs) and startups, the list also includes students and housewives who have never filed returns. The department is also examining whether their names had been used to evade the tax net. In her February 1 budget, finance minister Nirmala Sitharaman proposed a 30% tax on capital gains from crypto currencies, crypto assets from the next fiscal year. The budget further stated that a flat tax would apply irrespective of how long an individual has possessed the virtual digital asset. Officials added that there are instances where gains have exceeded Rs 40 lakh, yet the user has either not filed returns or filed returns with zero income. In an interview to ET last month, CBDT chairman JB Mohapatra had said that a large number of investors in crypto currency had not been declaring income and the income tax department has collected enough data on them. He had maintained that the