India Plans to Tax Income From Bitcoin Investments: Report

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India Plans to Tax Income From Bitcoin Investments: Report

India-based investors may soon have to pay taxes on returns earned from bitcoin investments.

The country’s income tax authority is tracking investors making money amid the ongoing bitcoin (BTC, +0.66%) price rally and is all set to demand taxes, two sources familiar with the matter said, according to The Economic Times (ET), a business-focused daily newspaper.

The tax department collected information about bitcoin trades executed through banking channels before the Reserve Bank of India’s (the country’s central bank) crypto ban took effect in April 2018. The Supreme Court overturned the ban in early March, bringing cheer to both investors and local cryptocurrency exchanges.

“The tax authority can also monitor earnings of cryptocurrency investors registered through KYC/AML compliant exchanges like CoinDCX and through national identity documents such as the PAN card,” Sumit Gupta, CEO of Mumbai-based cryptocurrency exchange CoinDCX, told CoinDesk.

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