Indian traders receive notices as regulators ramp up crypto tax evasion scrutiny
The post Indian traders receive notices as regulators ramp up crypto tax evasion scrutiny appeared on BitcoinEthereumNews.com. The Income Tax Department of India has intensified its crackdown on the crypto industry by sending more than 44,000 tax notices to those who did not report income or transactions related to virtual digital assets (VDAs). The Central Board of Direct Taxes (CBDT) clarified that the measures are part of a wider initiative to decrease tax evasion and bring more scrutiny into one of the fastest-growing crypto markets in the world. Minister of State Pankaj Chaudhary said that the department has undertaken focused reassessment drives and seized assets under the Income Tax Act, 1961. The CBDT also affirmed that it is applying advanced data analysis tools to compare the tax filings to crypto transaction details of Virtual Asset Service Providers (VASPs). Non-compliant users are subjected to severe penalties under the law, such as a fine of 200% on tax understatements. This is part of the NUDGE program launched by the CBDT, aimed at voluntary compliance. Under this initiative, the officials have delivered 44,057 emails and text messages to flagged users. The messages act as cautionary notes to the traders who purchased or sold digital assets without reporting them on their income tax returns. High adoption, high scrutiny Compared to regulation, crypto adoption has raced ahead in India, with approximately 100 million users and a growing adoption rate of 7.1% of the population. The high market penetration rate has made the government pay more attention to sealing tax loopholes in the industry. In FY23 and FY24, officials collected 705 crore rupees (approximately $80 million) in reported crypto earnings. But enquiries have found undisclosed earnings of at least 630 crore ($75 million). These results have led to tax review, raids, and seizures all over the country. To add to this pressure, the Enforcement Directorate has seized 42.8 crore ($4.8 million) in assets…
The post Indian traders receive notices as regulators ramp up crypto tax evasion scrutiny appeared on BitcoinEthereumNews.com.
The Income Tax Department of India has intensified its crackdown on the crypto industry by sending more than 44,000 tax notices to those who did not report income or transactions related to virtual digital assets (VDAs). The Central Board of Direct Taxes (CBDT) clarified that the measures are part of a wider initiative to decrease tax evasion and bring more scrutiny into one of the fastest-growing crypto markets in the world. Minister of State Pankaj Chaudhary said that the department has undertaken focused reassessment drives and seized assets under the Income Tax Act, 1961. The CBDT also affirmed that it is applying advanced data analysis tools to compare the tax filings to crypto transaction details of Virtual Asset Service Providers (VASPs). Non-compliant users are subjected to severe penalties under the law, such as a fine of 200% on tax understatements. This is part of the NUDGE program launched by the CBDT, aimed at voluntary compliance. Under this initiative, the officials have delivered 44,057 emails and text messages to flagged users. The messages act as cautionary notes to the traders who purchased or sold digital assets without reporting them on their income tax returns. High adoption, high scrutiny Compared to regulation, crypto adoption has raced ahead in India, with approximately 100 million users and a growing adoption rate of 7.1% of the population. The high market penetration rate has made the government pay more attention to sealing tax loopholes in the industry. In FY23 and FY24, officials collected 705 crore rupees (approximately $80 million) in reported crypto earnings. But enquiries have found undisclosed earnings of at least 630 crore ($75 million). These results have led to tax review, raids, and seizures all over the country. To add to this pressure, the Enforcement Directorate has seized 42.8 crore ($4.8 million) in assets…
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