The surge in enforcement follows a rigorous reconciliation process where officials matched investor returns against exchange-reported transactions and TDS records. This scrutiny uncovered Rs 888 crore in previously undisclosed income, highlighting the government’s ability to track trades, swaps, and disposals with high precision. India maintains its stringent tax framework, applying a flat 30% levy on gains without allowing losses from one asset to offset profits from another.
In section Cryptocurrency
India Cracks Down on Crypto Tax Evasion with 44,000 Notices
44,000 notices have landed in the inboxes of Indian crypto investors, signaling an aggressive push by tax authorities to close a $104 million gap in reported income. By cross-referencing exchange data with personal filings, the Income Tax Department is systematically dismantling attempts to obscure virtual digital asset gains.
Filing requirements have evolved into a complex compliance hurdle. Investors must now utilize Schedule VDA to report every individual transaction rather than net figures, with crypto-to-crypto swaps triggering taxable events. Those using ITR-2 for capital gains or ITR-3 for business income face heightened risk if their records fail to align with the automated data streams provided by custodians and wallet providers. As India prepares to adopt the OECD Crypto-Asset Reporting Framework by 2027, the scope for tracking offshore holdings and cross-border activity is set to expand, leaving little room for error in reporting staking income, airdrops, or wallet transfers.
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