I-T department exploring ways to tax bitcoin transactions

Last week, the RBI said it was concerned about bitcoin stocking fears that a rapidly swelling bubble could burst

India’s central tax authority is investigating bitcoin exchanges to try and find a way to tax transactions, an official said on Wednesday, even as the Reserve Bank of India (RBI) has warned against dealing in virtual currencies.

Thousands of transactions are taking place every day in unregulated cryptocurrency exchanges and the Income Tax Department has launched surveys in the cities of Delhi, Mumbai, Pune, Bengaluru and Hyderabad, spokeswoman Surbhi Ahluwalia said.

“We are looking at collecting information about modus-operandi of bitcoin exchanges, investors, their source of investment and possibility of collecting tax,” Ahluwalia told Reuters.

Last week, the RBI said it was concerned