The main aim of these surveys is to examine the theft of tax on virtual currencies in the country.
The surveys of around nine virtual currency exchanges in the country, in Bengaluru, Hyderabad, Mumbai, Delhi, and Kochi, have their primary aim to verify the source of funds and tax evasion. Just after it, Central Board of Direct Taxes presented latest reports on large-scale encashing of cryptocurrencies.
Warning for Bitcoin Exchange by RBI
Central Board of Direct Taxes has conducted surveys under section 133A of the Income Tax Act. An official said that Income Tax Department just not mean to check the legality aspect of Bitcoins. Actually, Bitcoin price has crossed the limit of Rs.11 lack in India, which has created an alarming situation among the authorities. The Reserve Bank of India had earlier warned users of cryptocurrency, has recently issued another warning on virtual currencies. Though, the government of India has yet to clear its attitude towards legal status of Bitcoins.
Bitcoin- A Big Concern for Central Bankers
China had squeezed down on cryptocurrencies. China had indicated two biggest bitcoin platforms, BTCC and OKCoin, to stop all trading operations. These surveys had the aim to collect all evidence for creating an identity of investors and traders. These surveys also had the aim to identify the transactions undertaken and to clear the identity of counterparties and related used the bank account.
Bitcoin is not regulated in India, as it is a virtual currency.This is the reason behind why its circulation has become a matter of concern for central bankers. The survey teams have several financial data and inputs regarding the operation of these exchanges. It has become one of the biggest actions against virtual currencies in the country.