TechFlow news, January 8 — According to Cointelegraph, the Indian Income Tax Department (ITD) warned during a recent parliamentary Standing Committee on Finance meeting that offshore exchanges, private wallets, and decentralized finance (DeFi) tools could make tracking cryptocurrency income "nearly impossible." Tax officials emphasized that the "anonymous, borderless, and near-instant" nature of value transfers in crypto assets enables funds to bypass regulated financial intermediaries.
Although India currently imposes a flat 30% tax rate on cryptocurrency gains and a 1% withholding tax on all transfers, reconstructing transaction chains across multiple jurisdictions remains highly challenging. Industry insiders point out that the current tax framework does not allow for offsetting trading losses, creating "friction rather than fairness."
