Indian Government Deploys Tech to Tackle Crypto Tax Evasion
The post Indian Government Deploys Tech to Tackle Crypto Tax Evasion appeared on BitcoinEthereumNews.com. India trains officers in blockchain to boost crypto tax enforcement capabilities. AI and machine learning deployed to detect suspicious crypto transaction patterns. Bybit starts charging 18% GST on Indian crypto user services. The Indian government is taking serious steps to curb tax evasion in the cryptocurrency sector. It is now using advanced tools like data analytics, artificial intelligence (AI), and digital forensics to track and investigate virtual digital asset (VDA) transactions. The action is meant to enhance compliance and increase revenue collection concerning crypto-related earnings. India Trains Tax Officers in Blockchain Forensics Firstly, the government disclosed in Parliament that it is concentrating on capacity building of the tax officers. Special training programs, webinars, and workshops are being organized with the assistance of such institutions as the National Forensic Science University (NFSU) in Goa. In these programs, officers are trained on blockchain analysis, digital evidence, and digital forensics. Because of this, they are in a better position to track and investigate VDA transactions more effectively. However, the present system still has some loopholes. The government acknowledged that they are failing to conduct real-time matching of crypto transactions that are reported in the income tax returns with the information provided by the Virtual Asset Service Providers (VASPs). Rather, they are detected based on the differences between Tax Deducted at Source (TDS) returns that VASPs file and tax returns that individuals file. In order to fill this divide, the Central Board of Direct Taxes (CBDT) introduced the NUDGE campaign. In this campaign, the government notifies those taxpayers who failed to report VDA transactions of 1 lakh rupees and above. Besides enforcement, the crypto taxation system in India is also very rigid. The profits made through crypto transfers are subject to a flat 30 percent income tax. This tax does not permit any deductions…
The post Indian Government Deploys Tech to Tackle Crypto Tax Evasion appeared on BitcoinEthereumNews.com.
India trains officers in blockchain to boost crypto tax enforcement capabilities. AI and machine learning deployed to detect suspicious crypto transaction patterns. Bybit starts charging 18% GST on Indian crypto user services. The Indian government is taking serious steps to curb tax evasion in the cryptocurrency sector. It is now using advanced tools like data analytics, artificial intelligence (AI), and digital forensics to track and investigate virtual digital asset (VDA) transactions. The action is meant to enhance compliance and increase revenue collection concerning crypto-related earnings. India Trains Tax Officers in Blockchain Forensics Firstly, the government disclosed in Parliament that it is concentrating on capacity building of the tax officers. Special training programs, webinars, and workshops are being organized with the assistance of such institutions as the National Forensic Science University (NFSU) in Goa. In these programs, officers are trained on blockchain analysis, digital evidence, and digital forensics. Because of this, they are in a better position to track and investigate VDA transactions more effectively. However, the present system still has some loopholes. The government acknowledged that they are failing to conduct real-time matching of crypto transactions that are reported in the income tax returns with the information provided by the Virtual Asset Service Providers (VASPs). Rather, they are detected based on the differences between Tax Deducted at Source (TDS) returns that VASPs file and tax returns that individuals file. In order to fill this divide, the Central Board of Direct Taxes (CBDT) introduced the NUDGE campaign. In this campaign, the government notifies those taxpayers who failed to report VDA transactions of 1 lakh rupees and above. Besides enforcement, the crypto taxation system in India is also very rigid. The profits made through crypto transfers are subject to a flat 30 percent income tax. This tax does not permit any deductions…
What's Your Reaction?
