Widening its probe into bitcoin investments and trade, the Income Tax (IT) department is set to issue notices to 4 to 5 lakh high networth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency. “Those individuals and entities whose records were recovered by the department are now being probed under tax evasion charges. About 4-5 lakh HNIs and their businesses are being issued notices which will first seek their relevant financial details and subsequently establish the tax demand, if any, he said. The Reserve Bank of India (RBI) has also cautioned users, holders and traders of virtual currencies. In March, the Union finance ministry constituted an Inter-Disciplinary Committee to take stock of the present status of virtual currencies both in India and globally and suggest measures for dealing with them.

Source: Hindustan Times December 18, 2017 14:44 UTC