11 Crypto Exchanges Fined $13M by India for Tax Evasion
  • 11 crypto exchanges have been subject to tax evasion.
  • A total of 81.54 crore rupees ($10.77M) was detected, 95.86 crore rupees ($12.6M) with penalties included.
  • Wazirx, Coindcx, and Coinswitch Kuber are the top three exchanges with the highest amounts evaded.

The government of India unveiled that the country’s tax authority had investigated 11 cryptocurrency exchanges regarding tax evasion. As of today, the government has retrieved a total of 95.86 crore rupees or $12.6 million.

Last Monday in Lok Sabha, the lower house of parliament, the Indian government gave some answers to questions regarding the taxation of cryptocurrency exchanges.

“Whether it is true that some cryptocurrency exchanges were involved in evasion of goods and services tax (GST) and it was also detected that other cryptocurrency exchanges and major investors in digital currencies are under investigation by the government,” Lok Sabha member S. Ramalingam asked the finance minister.

The parliament member also asked about the action taken or proposed by the government against those cryptocurrency exchanges in GST evasion.

Pankaj Chaudhary, the minister of state in the ministry of finance replied:

“Few cases of evasion of goods and services tax (GST) by cryptocurrency exchanges have been detected by Central GST formations.”

11 Crypto Exchanges Named

He disclosed that 11 cryptocurrency exchanges were subject to tax evasion in the amount of 81.54 crore rupees ($10.77M). Together with interest and penalties, the tax authority has retrieved a total of 95.86 crore rupees($12.6).

A list of the 11 investigated exchanges received penalties from the minister of state. Specifically, these included Coindcx, Buyucoin, Coinswitch Kuber, Unocoin, Flitpay, Zeb IT Services (Zebpay), Secure Bitcoin Traders, Giottus Technologies, Awlencan Innovations India, Wazirx, and Discidium Internet Labs. According to the list, Wazirx, Coindcx, and Coinswitch Kuber alone had a total of $9.2M in tax evasion.

Opposition to Crypto Exchange Penalties

Parliament member Ramalingam questioned the finance minister on “whether the government has any data regarding the number of cryptocurrency exchanges… presently involved in cryptocurrency exchange business in the country.”

Finance minister Chaudhary replied:

The government does not collect any data on cryptocurrency exchanges.

In other news, Indian Finance Minister Nirmala Sitharaman has suggested taxing crypto income at 30%. Moreover, he suggested levying a 1% tax deducted at source (TDS) on every crypto transaction. However, this received opposition from a parliament member. Specifically, the latter encouraged the government to review the 1% TDS, emphasizing that it will “kill the crypto asset class.”

Recommended News :

Disclaimer Read More

Crypto News Land (cryptonewsland.com), also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

CryptoNewsLand (CNL) is a one-stop online crypto news website that offers the latest happenings in the crypto world.