For the love of god, get a lawyer that understands bitcoin and stop throwing random numbers out to the government.
Also, I'm curious - did they have a court issued warrant to obtain your customer data or did they intimidate you into giving it to them ?
This ^ And did they send a legal letter summoning? or was it just an obligation?
Now I am going to be flamed for this but this thread is an epitome of why people involved in BTC in India are effed. 70% don't understand the law, are willing to take unnecessary risks because they feel obligated (or intimidated or even too smart) to give opinions which might later form legal basis of what IRS/ED laws would be formed upon. For god's sake, if you are in legal trouble hire a damn lawyer. Explain him your position and let him deal with ED/IRS.
Well said. 8% is ridiculous! Throwing out such numbers will open doors for strict regulation or checks. At the same time I assume the govt. officials may have talked to other bitcoin exchange owners, who will probably be very honest in their answers.
This will leave them confused, nonetheless.