Archive · 14 Jun 2025
CBDT Intensifies Crypto Tax Evasion Crackdown, Issues Notices
The Indian government is checking if people are paying the right taxes on their crypto investments.
They're looking for those who might be avoiding taxes by not reporting their crypto income or claiming incorrect deductions.
Crypto income is taxed at a 30% rate, with no deductions or loss offsets allowed.
Tax officials are comparing tax returns with data from crypto exchanges to find mismatches, prompting taxpayers to correct their filings.
This is part of an effort to encourage accurate tax reporting and ensure compliance.
CBDT is investigating tax evasion related to cryptocurrency investments.
Investigations target individuals and entities who have not complied with the Income Tax Act.
Taxpayers who failed to disclose Virtual Digital Asset (VDA) income are being reviewed.
Gains from VDAs are taxed at 30% without set-off for losses or indexation.
The I-T department is comparing ITRs with TDS returns from crypto exchanges.
- Who
- Individuals and entities investing in virtual digital assets (VDAs).
- What
- CBDT is investigating tax evasion and money laundering through cryptocurrency investments.
- When
- Ongoing, following the introduction of the 30% tax on VDAs.
- Where
- India
- Why
- To identify and address tax evasion, and to encourage accurate tax reporting on VDA income.
Taxpayers
I-T Department
Compliance
Taxpayers
Potential non-compliance with tax laws.
I-T Department
I-T department believes some taxpayers are evading taxes through crypto investments.
- Department
- CBDT, Income Tax Department
- Focus
- Tax Evasion, Money Laundering
- Tax Rate
- 30%
- Tax Benefit
- No Set-off or Indexation
- Campaign
- NUDGE
Sources
Crypto income on I-T radar; dept send emails to individuals
Unaccounted income invested in crypto on IT Dept radar
Income Tax Department investigating evasion from crypto assets
Unaccounted income invested in crypto on I-T radar
CBDT investigates tax evasion through crypto assets