India Targets Crypto Tax Evasion
Indian tax authorities are cracking down on wealthy individuals hiding crypto trades on Binance. The Central Board of Direct Taxes (CBDT) is leading this nationwide effort.
Over 400 high-net-worth individuals are under scrutiny for concealing crypto transactions between 2022 and 2025. many used offshore platforms like Binance to avoid India’s high crypto taxes. The CBDT has ordered investigation teams in major cities to report their progress by October 17.
Traders used peer-to-peer transfers and offshore exchanges to evade taxes. India’s tax laws include a 1% tax on each sale and profit taxes up to 42%. The CBDT is now using data-driven tools to close gaps in crypto disclosure.
- Investigators are looking at P2P trades on Binance.
- Settlements were made through domestic bank accounts or cash.
- Authorities can issue summons for proper reporting.
Non-compliant traders face severe penalties. failure to report virtual digital assets can trigger reassessment or scrutiny. Penalties under Section 270A and the Black Money Act could follow.
Experts advise taxpayers to reconcile their VDA activity and file updated returns. This can help avoid harsh penalties as enforcement actions intensify.
The crackdown shows India’s strengthened compliance framework for digital assets. Authorities now have access to transactional data from exchanges, making it harder to hide crypto income.
