IT Dept issues notices for trading bitcoins

New Delhi Feb 3: The Income Tax Department on Friday has once again clarified about Bitcoin and has said that "It has issued few lakh" notices to those who have put their funds in bitcoins and it is working to obtain taxes that are due on these investments."

CBDT Chairman Sushil Chandra has told that "it has come to the notice of the taxman that while many such investors did not pay advance tax on the benefits which they have accrued, some others have not explained these investments in their tax returns in the past."

"The department had conducted pan-India surveys at these exchanges in December last year.We have issued notices (to investors) and they (many of them) have agreed to pay taxes. We will definitely take taxes as far as the money is concerned which is invested (in bitcoins trade) and is unexplained," he said.

Earlier Finance Minister in his budget has clarified that all cryptocurrencies including bitcoin are not legal and we would use blockchain technology to ensure that such currencies are not used
for illicit transactions.