The Indian government has announced that 11 cryptocurrency exchanges have been under investigation by the country’s tax authority. About 95.86 million rupees (US$12.6 million) were confiscated from them.
11 crypto exchanges under investigation for tax evasion
The Indian government answered some questions on taxing cryptocurrency exchanges in the Lok Sabha, the lower house of parliament, on Monday.
MP S. Ramalingam asked the Finance Minister “whether it is true that some cryptocurrency exchanges have been involved in Goods and Services Tax (GST) evasion, and it has also been noted that other cryptocurrency exchanges and major investors in digital currencies are under investigation by the government .”
Additionally, the MP asked the finance minister about “the measures taken or proposed by the government against cryptocurrency exchanges detected in circumventing the GST.”
Minister of State at the Treasury Pankaj Chaudhary replied:
Some cases of Goods and Services Tax (GST) evasion through cryptocurrency exchanges have been exposed by central GST formations.
He revealed that 11 cryptocurrency exchanges were investigated and revealed Rs 81.54 million in tax evasion. The Inland Revenue collected Rs 95.86 million including interest and penalty.
The Minister of State provided a list of the 11 exchanges under investigation: Coindcx, Buyucoin, Coinswitch Kuber, Unocoin, Flitpay, Zeb IT Services (Zebpay), Secure Bitcoin Traders, Giottus Technologies, Awlencan Innovations India, Wazirx and Discidium Internet Labs. According to the list, the exchanges with the most bypasses were Wazirx, Coindcx and Coinswitch Kuber.
The list of crypto exchanges investigated for tax evasion. Source: Minister Pankaj Chaudhary.
Ramalingam, a member of Lok Sabha, also asked the finance minister “if the government has data on the number of cryptocurrency exchanges currently engaged in cryptocurrency exchange business in the country.”
Minister Chaudhary replied:
The government does not collect data on cryptocurrency exchanges.
Meanwhile, Indian Finance Minister Nirmala Sitharaman has proposed taxing crypto earnings at 30% and imposing a 1% withholding tax (TDS) on every crypto transaction. A member of parliament recently called on the government to reconsider the introduction of the 1% TDS, stressing that it will kill the crypto asset class.
Tags in this story coindcx, coinswitch kuber, crypto exchanges, crypto exchanges tax evasion, cryptocurrency exchanges, india, indian tax, indian tax, lok sabha, tax avoidance, tax evasion, wazirx, zebpay
What do you think of the Minister of State’s answers? Let us know in the comment section below.
Kevin Helms
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