I-T notices to cryptocurrency investors on suspicion of tax evasion

The income tax department has also inquired whether the users have brought or sold cryptocurrency from websites registered outside the country

The income tax department has sent notices to thousands of cryptocurrency investors across the country, seeking additional details on the money invested in the virtual currency during the government’s demonetisation exercise.

Among 28 questions in total, the income tax department has sought details on “investment or sales of bitcoins and other cryptocurrencies in India and abroad during 8 November-31 December 2016,” said a notice to cryptocurrency investors on December 20. A cryptocurrency, such as bitcoin, is a virtual currency created and stored electronically using the blockchain technology.

“We have issued notices to cryptocurrency investors in cases where their investment in not in