Investigators from income tax department conducted the raid at major bitcoin exchanges across India, this Wednesday morning. Tax raid in India is not a sudden act. Earlier warnings were issued by Reserve Bank of India over the exercise of cryptocurrency.
Investigators conducted onsite searches over top 9 bitcoin exchanges in cities including Delhi, Pune, Bengaluru, Hyderabad, Gurugram, and Kochi.
Multiple teams of detectives from the tax department, under the command of Bengaluru investigation wing, surveyed the trading venues in other metropolitan cities in the target, stated government official to Indian news agency PTI.
The Tax raid in India reports stated that the big move is just a beginning, there is more to come.
Read more: RBI’s third warning to the players
The operation is carried under section 133A of the Indian Income Tax Act, “for gathering evidence for establishing the identities of cryptocurrency investors as well as traders, undertaken transaction by them, the identity of counter-parties, bank accounts used, emails and other data.”
The survey teams are said to be armed with more data in their record. Various financial data and inputs related to the workings of the exchanges are in the knowledge of the detectives.
The operation is not only limited to suspicion of tax evasion by exchange users but is also focussing on countries major issue ‘black money”. In November 2016, during demonetization process, large amounts of “black money” had been laundered using bitcoin, said department officials.
The country’s finance minister, Arun Jaitley, recently clarified that the government is working on “recommendations” to regulate the cryptocurrency.
Though the fear still remains in position.