The post CBDT probes crypto tax evasion in India appeared on BitcoinEthereumNews.com.

India’s Central Board of Direct Taxes (CBDT) has launched an investigation into unaccounted crypto incomes among traders in the country. According to the agency, they are looking into possible tax evasion and money laundering through the use of digital assets. The CBDT stated that there is a likelihood that residents in the country have been laundering unaccounted income through digital assets, naming avenues like investments in high-risk digital assets and other aspects. The tax agency is presently looking into and verifying individuals and entities it believes are connected to the use of high-risk virtual digital assets (VDAs) and appear to have failed to comply with key provisions in the Income Tax Act, 1961. India’s CBDT set to investigate cases of unaccounted crypto incomes According to officials familiar with the matter, these investigations are majorly linked to individuals and firms that have either failed to disclose their digital asset income or incorrectly filed out their tax filings. Under Section 115BBH of the Income Tax Act, introduced in the Finance Act, 2022, income from transfers of VDAs is taxed at a flat rate of 30%, plus applicable surcharge and cess. The law forbids deductions of any expenses except for the cost of acquisition, disallowing set-off or carry forward of losses from VDA transactions. Government data analytics has also shown widespread non-compliance with the rule, causing the CBDT to launch a full investigation into residents who are involved. The data showed that a significant number of taxpayers are either refusing to report digital asset gains in the designated schedule VDA of their income tax returns (ITR), or paying tax at a low rate while incorrectly claiming benefits such as cost indexation. The CBDT has also matched ITR filings with TDS data submitted by Virtual Assets Service Providers (VASPs), who are commonly known as…

---

Filed under: News - @ June 14, 2025 8:26 am