This is done by using artificial intelligence (AI), machine learning, and others Data analysis tools. According to the government’s response in Parliament, the government collected 437 rupees in taxes over the fiscal year 2022-23 of VDA income.
The government implemented income tax rules for encryption and other VDAS from the fiscal year 2022-23. In the fiscal year 2022-23, the government collected 269.09 rupees as taxes from VDA income.
Members of Parliament asked several questions about tax collection and the loss of potential revenue due to lack of report/reporting of VDAS income and technological tools used to monitor encryption activity.
ET Wealth Online breaks government responses to the use of data tools, central systems to match encryption tax data, and continuous training programs for tax employees.
Questions about the collection of the income tax from VDAS, the encrypted currency
Parliamentarians Lavo Sri Krishna Divariao and the Gres Motors Harish Palaji, members of Parliament, Luke Sebha, asked the following questions the government responded in Parliament.
A) Total revenue collected from income tax on VDA/Cryptocurrency in the past three years, general;
The government in Parliament answered: The income tax was submitted from the transfer of virtual digital assets (VDA), according to Article 115BBH of the Income Tax Law, 1961, from the fiscal year 2022-23. Collecting income tax from VDA, over the past three years as is the case:
table
(B) whether the government has been submitted by the government regarding the loss of revenues expected due to the lack of reporting/income reporting from VDA/Cryptocurrency transactions;
The government in Parliament replied: No estimates have been made.
(C) Whether the government is using data analysis tools/ml/ml Tax evasion In VDA transactions, if so, details of that;
The government in Parliament answered: The government uses data analysis tools to track and discover tax evasion from VDA transactions. The analysis includes the use of a non -Filer (NMS) monitoring system, project seeing and internal databases for the income tax department, to link the available information about VDA transactions with transactions that have been revealed in the return of income by the taxpayer.
(D) Whether the government has created a central system to match the relevant ITR files with the actual time with the return of TDS by virtual asset service providers (VASPS), if so, then the status of its implementation; and
The government in Parliament replied: The actual time of the transactions related to VDA, provided in income tax declarations, has not been implemented, with information provided by virtual asset service providers (VASPS). However, TDS revenues from VASPS and income tax declarations submitted by taxpayers to determine the contradictions in the reported VDA transactions are analyzed. The Central Council for Direct Taxes has started the NUDGE campaign (the non -data use of guidance and empowerment) to determine such contradictions for more procedures. Under the appropriate campaign contacts, to review and update their income tax declarations, it was issued to all taxpayers who have not reported the transactions related to VDA in their income tax declarations, although tax deduction in the source of such transactions by VASPS, where there were more than Ruce 1 for KHH.
(E) Whether the government has taken any initiatives to build capabilities to equip tax officials to monitor effective compliance and investigate the VDA/Cryptocurrency system, if this is the case, details of that, and if not, then the reasons?
The government in Parliament replied: Several capacity building initiatives are implemented by the government to provide officers to monitor effective compliance and investigate VDA transactions. Training programs, specialized workshops, Chintan Shivirs and practical workshops are regularly by various training institutes under the Income Tax Department. At the local level, field offices conduct training sessions and seminars on the Internet on digital forensic medicine, Blockchain analysis, legal frameworks, and deal with digital evidence. The officers and officials also trained short -term on digital forensic medicine, in partnership with the National Criminal Sciences University (NFSU), GOA, which enables them to identify and track transactions related to VDA from the data taken during the intrusive procedures.
The penalty for not disclosing coding profits
According to a report in economic times, the Ministry of Income Tax sent significant notifications to taxpayers who did not pay the correct income tax amount or failed to report income from the encrypted currency in tax decisions.
If the individual tax motivation fails to report encryption transactions, he may be responsible for paying a penalty under Article 270 A of the Income Tax Law, 1961. Under this section, the taxpayer is responsible for paying an amount equal to fifty percent of the tax amount due on the competent income. If the income that was reported is the result of the income informing, this is equal to two hundred percent of the amount of the tax due on the reported income.
