Crypto Evasion Under Fire: India Launches Major Enforcement Blitz

India’s tax authority has stepped up its game on crypto reporting. Thousands of taxpayers are getting notices about missing income from virtual digital assets. The move comes as part of a larger push to identify hidden gains and potential money laundering through digital tokens.

Crypto Holders Under Examination
According to authorities, the Central Board of Direct Taxes is examining if people put their crypto trades in Schedule VDA of their returns. Crypto exchanges, or VASPs, file TDS reports, and those numbers do not always match what shows up on income tax returns.

Flat 30% Tax Rule Explained
Based on reports, Section 115BBH of the Income Tax Act sets a flat 30% tax on gains from VDA transfers. The tax body combines bank information, TDS filings from VASPs, and even blockchain checks.