Any communication received from the Tax Department is always worrisome for any taxpayer and especially when it is not a normal notice but a summon under section 131 of Income Tax Act. Wherever there is an income there is going to be a tax, so if you have made any profit from your bitcoin trading, you have to pay tax on it (please refer my earlier column on how to pay tax on bitcoins profit). Details of income tax return filed for last six years. Collect all the documents and information: Immediately collect all the relevant documentary evidence for your specific bitcoins and other cryptocurrencies transactions which the summon has identified. As long as one can justify all income source, transactions to the tax department, they need not worry.

Source: dna March 09, 2018 00:40 UTC