The post India Cracks Down on Crypto Tax Evasion with Seizures & Notices appeared on BitcoinEthereumNews.com.

India’s tax department issued notices to individuals over unreported crypto income for 2022-24.  Enhanced data sharing by exchanges enabled governments to monitor in real-time.  Authorities seized $327,000 from a cross-border cyber fraud ring and made an arrest. India’s Income Tax Department has escalated enforcement actions against cryptocurrency tax evaders. They issued notices to thousands of individuals who failed to report digital asset income in their tax filings for financial years 2022-23 and 2023-24. The crackdown utilizes enhanced data-sharing mechanisms between digital asset exchanges and government authorities, enabling real-time transaction monitoring and cross-referencing.  Tax officials have identified discrepancies between taxpayer-reported figures and actual transaction data obtained from digital asset platforms and Tax Deducted at Source (TDS) returns. These inconsistencies have raised red flags over systematic underreporting or complete non-disclosure of income generated through cryptocurrency trading activities. India Tightens Crypto Tax Enforcement as CBI Arrests Fraud Suspect  The Central Board of Direct Taxes has expressed concern about potential tax evasion and illicit financial flows. They specifically identified a group of ‘high-risk’ investors suspected of channeling untaxed income into virtual digital assets. This selective attention indicates that the authorities are focusing their efforts on cases with the highest potential for high-value revenue recovery. Impacted taxpayers were invited to rectify their filings by using restated return processes that provide individuals with the ability to change previously submitted returns within stated time limits. The notices urge compliance through voluntary disclosure rather than pursuing immediate punitive measures, though seizure actions indicate serious consequences for non-cooperation. Raj Kapoor, founder and CEO of India Blockchain Alliance, characterized the enforcement as part of a “sweeping regulatory architecture marked by uncompromising know-your-customer/anti-money laundering stringency, forensic blockchain intelligence integration, and the institutionalization of ex-ante disclosure obligations.” In a related move, the CBI apprehended Rahul Arora, an Indian resident, allegedly involved in…

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Filed under: News - @ June 25, 2025 7:22 pm