Indian crypto user received an IT department notice asking 26 questions
Indian crypto user received an Income Tax notice dated 22nd July 2019 from the office of the Deputy Director of Income Tax (Investigation) - 1. Person who received the notice, required to go to the IT office with the document or evidences. He may also send details through post and email as well.
The Income Tax Notice was shared on twitter by IndiaBits on 30th July 2019. Details of the notice receiver was hidden, So we can not say who has received this notice. But according to the tweet, this notice was given by IT department of Raipur (Chattisgarh). Similar notice was also received by many crypto users in 2018 as well.
According to the notice, Receiver need to answer questionnaire mention in Annexure A containing 26 questions. In the questionnaire simple and basic questions were asked regarding income sources, income tax explanation for last 3 years, investment in Bitcoin and cryptocurrency, credit cards details of last 3 years, Bitcoin and crypto wallets details and Indian and foreigner exchanges you are using for trading etc.
Last week, Income tax notice was also received by Crypto users in U.S asking for the details and filing Income tax returns accordingly. According to the reddit account Mexfogel, He has received a letter from Department of Treasury Internal Revenue Services asking to report virtual currency transactions from year 2013 through 2017.
Our advice to everyone, always consult your financial advisor and file proper income tax return mentioning all the required details of virtual assets and investments you have and maintain crypto transactions to avoid such type of issue.
Disclaimer & Suggestion : Please always do your due diligence before investing in any cryptocurrency or project. This should not be treated as financial advice.