Bitcoin: Income tax dept sends notices to HNIs, wants to know source of investment

Bitcoin: Income tax dept sends notices to HNIs, wants to know source of investment

The income tax department on Saturday asked bitcoin holders to disclose details of bitcoins or other cryptocurrency transactions. The income tax notices were issued to 4-5 lakh high net worth individuals (HNIs) under the annexure to summons under Section 131 of the Income Tax Act.

Mint has a copy of the tax notice to bitcoin holders.

“We have sent out summons to HNIs who were trading in bitcoins under Section 131. Right now, it is mostly fact-finding to understand sources of income and whether there is any unreported income arising out of bitcoins,” said an income tax official declining to be named.

The income tax department has specifically sought details of bitcoin investments during the demonetisation period, that is between 1 November 2016 and 31 December 2016