Anticipation of payment of crores abroad: Income tax searches at the locations of hawala and crypto traders, major action by the Investigation Wing

Anticipation of payment of crores abroad | Parallel Banking Channel | Crypto exchanges raided in 2022 | Crypto exchanges raided

Anticipation of payment of crores abroad -:

Digital Desk, Ashish Singh. Mumbai The Income Tax Department on Friday launched search operations at the locations of hawala operators and crypto traders. The Income Tax’s Investigation Wing is examining the documents related to the transactions at more than a dozen places in Delhi-Mumbai and other cities of the country.

According to sources, this search operation is related to sending crores of rupees abroad through hawala and cryptocurrency channels a few years ago. There is also a possibility of tax evasion in this. According to information, hawala traders evade tax by taking cash in the country and paying in cryptocurrency abroad. The role of crypto exchanges like Wazir X and Binance in this is under suspicion.

According to the rules, it is mandatory to disclose investments and profits in crypto and other digital currency through a cryptocurrency exchange. But the cases in which the Income Tax Department started the search operation are between 2016-17 to 2019-20. The people who are being searched here have not shared information related to the fraud of crores through hawala and cryptocurrency exchange.

The earnings from this have also not been disclosed. The Income Tax Department had recently issued a 148-A notice to them seeking information on investments and profits made in other currencies including cryptocurrency.

Parallel Banking Channel -:

Before the year 2022, there was no rule for cryptocurrency and exchange. In the absence of a regulator, hawala trading had become a way in which exchanges functioned as parallel banking channels. Bitcoin investors and hawala traders were taking undue advantage of this.

Hawala traders and cryptocurrency traders used to take cash in India and convert it into cryptocurrency abroad through exchanges like Binance and Wazir X.

Crypto exchanges raided in 2022 -:

Last year, the Director General of GST Intelligence raided several cryptocurrency exchanges including Wazir X. During this, he got many important leads in a big tax evasion case. In this case, the Director General of GST Intelligence imposed a fine of crores of rupees on crypto exchanges.

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