New threat swarming on India’s cryptocurrency holders

Cryptocurrency has changed the way investors looked at investments previously.All the top notch industries namely Reliance, and Tata are already doubling up their investment game by investing in the crypto.  

 

Time and again Indian government has hinted towards bringing its own cryptocurrency. Every time when news like this is flashed on Tv screens it gives crypto holders a mini heart attack.

 

For filing the belated tax returns of 2019-2020 the due date was 31st March 2021.But a lot of cryptocurrency holders have concealed their digital assets to cut down their income tax expenses.

 

Now the threat of being questioned by the IT department is swarming on them.Even the businesses which  are procuring and dealing in NFT’s (non-fungible tokens) as digital assets are also in the line of questioning.

 

The legal status of Cryptocurrency has always been a hot topic for debate in India.While the judiciary steps out from this discussion the government has always kept a hawk’s eye on the cryptocurrency holders.

 

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If the businesses revealed about their digital assets the legality of transactions is sure to be questioned .By any chance if they decide to hide they will be on  vigilant study by the IT department.

 

Looks like they are on the tip of the iceberg and the last resort will  be disclosing  the exact amount of cryptocurrencies being held by them.

 

According to ET prime, there are question marks whether the LRS route and bank cards can be used to buy cryptos abroad.

 

LRS

 

LRS stands for Liberalised Remittance Scheme this scheme provided by the Reserve bank of India (RBI) allows resident individuals to send a certain amount of money for investment or expenditure to another country.It also allows residents to send upto $250,000 within a calendar year.

 

The businesses are still dubious about the legal status of cryptocurrencies in India now the government has even made the rules stricter for income tax defaulters.

 

Cryptocurrency in India

 

The cryptocurrency holders in India are roughly estimated to be around 8 million; they even hold a whopping sum of (100 billion rupees)($1.4 billion).

 

Hence the government of India is looking for ways to get the accurate data of cryptocurrency holders to increase the government treasury 

 

It is also estimated that the cryptocurrency holders will continue to multiply every year and by 2025 nearly half of the world’s population will be dealing in cryptocurrency.