If you have invested in Bitcoin or planning to invest you must read it. Indian government’s and Banks are taking strict action on bitcoin exchanges and bitcoin users. Many top banks have suspended or limited functionality on bitcoin exchange accounts. State Bank of India (SBI), Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have all taken strong action toward crypto exchanges, either closing accounts or severely limiting functionality.
Income Tax Notices
The Indian government has repeatedly issued warnings over the use of digital currencies such as bitcoin. Back in 2013, India’s central bank, that Reserve Bank of India (RBI), issued its first warning about the potential misuse of cryptocurrencies, which was later reiterated last February.
According to B.R. Balakrishnan, a director general of investigations at the income tax department in the southern state of Karnataka,
We cannot turn a blind eye. It would have been disastrous to wait until the final verdict was out on its legality.
Balakrishnan said that details about investors total holdings and their source of funds was asked for. This is because people were not reflecting it on their tax returns with the investment not accounted for in many cases. This can be the case of black money as well.