Tax on bitcoin

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2018 my friend have got notice u/s 131 (1A). IT office is asking for my 3 years return and assets details. Also asking for list of Bit coin accounts and bitcoin investment and profit. he is Ph.d student and has taken money from his brother via online bnking. His brother is an a salaried person and his TDS is deducted normally by employer. His investment is around 6 -7 lakhs and so far there is 6 lakh gain trading in bitcoin. i have heard IT officer harass a lot.. Please advise, this is serious. How should he reply to IT notice

Read more at: https://www.caclubindia.com/experts/how-to-reply-to-income-tax-notice-for-trading-in-bitcoin-2632904.asp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 March 2018 Reply to the notice as funds received for investment in bitcoin received from brother as gift through bank account( no tax payable such gift from relative exempt). He is salaried employee paying taxes regularly.
Return will be filed and tax will be paid for the profit earned on bitcoin trading.
I am a PhD student no taxable income earned for earlier years hence ITR for earlier 3 years not filed.
No AO can harass you it is a clear case.

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