India Launches Fresh Crackdown on Crypto Tax Evasion
The post India Launches Fresh Crackdown on Crypto Tax Evasion appeared on BitcoinEthereumNews.com. India cracks down on crypto tax evasion through advanced data analytics. High taxes push Indian traders to shift operations offshore. The government’s NUDGE campaign targets non-compliance in digital asset disclosures. India’s Income Tax Department has started a new crackdown on tax evasion and money laundering linked to virtual digital assets (VDAs), including cryptocurrencies. The action is one of many steps undertaken by the Indian government to ensure adherence to tax legislation and enhance the transparency of the developing digital asset market. High Crypto Taxes Push Indian Traders to Offshore Jurisdictions According to officials and local media, the department has already singled out individuals and companies that carried out crypto transactions without adhering to the Income Tax Act, 1961. As a follow-up, thousands of taxpayers have already received official emails seeking to have them review and update their income tax returns (ITRs). These notices warn that if anyone did not report income from VDA transactions correctly, they may face verification or investigation. Further, this crackdown is an activity in the ongoing series of the Central Board of Direct Taxes (CBDT) campaign, titled NUDGE. Non-intrusive Usage of Data to Guide and Enable is an initiative that employs next-level data analytics to monitor abnormalities. As a government source told CoinDesk, a significant number of taxpayers either failed to attach the mandatory Schedule VDA or attempted to underreport crypto income. Others still tried to take illegal deductions or cheaper tax rates. It is the third NUDGE campaign so far in six months. The earlier two dealt with disclosures of foreign assets and bogus political contributions deductions provisions of Section 80GGC. The current push is among the broader initiatives by the government to encourage voluntary tax compliance as a part of its TRUST—Taxpayers First—strategy. According to the Financial Times, the profit obtained in India through…
The post India Launches Fresh Crackdown on Crypto Tax Evasion appeared on BitcoinEthereumNews.com.
India cracks down on crypto tax evasion through advanced data analytics. High taxes push Indian traders to shift operations offshore. The government’s NUDGE campaign targets non-compliance in digital asset disclosures. India’s Income Tax Department has started a new crackdown on tax evasion and money laundering linked to virtual digital assets (VDAs), including cryptocurrencies. The action is one of many steps undertaken by the Indian government to ensure adherence to tax legislation and enhance the transparency of the developing digital asset market. High Crypto Taxes Push Indian Traders to Offshore Jurisdictions According to officials and local media, the department has already singled out individuals and companies that carried out crypto transactions without adhering to the Income Tax Act, 1961. As a follow-up, thousands of taxpayers have already received official emails seeking to have them review and update their income tax returns (ITRs). These notices warn that if anyone did not report income from VDA transactions correctly, they may face verification or investigation. Further, this crackdown is an activity in the ongoing series of the Central Board of Direct Taxes (CBDT) campaign, titled NUDGE. Non-intrusive Usage of Data to Guide and Enable is an initiative that employs next-level data analytics to monitor abnormalities. As a government source told CoinDesk, a significant number of taxpayers either failed to attach the mandatory Schedule VDA or attempted to underreport crypto income. Others still tried to take illegal deductions or cheaper tax rates. It is the third NUDGE campaign so far in six months. The earlier two dealt with disclosures of foreign assets and bogus political contributions deductions provisions of Section 80GGC. The current push is among the broader initiatives by the government to encourage voluntary tax compliance as a part of its TRUST—Taxpayers First—strategy. According to the Financial Times, the profit obtained in India through…
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