India’s Tax Department Intensifies Crackdown on Crypto-Asset Tax Evasion, Uncovering Over $100 Million in Undeclared Income
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India’s Tax Department Intensifies Crackdown on Crypto-Asset Tax Evasion, Uncovering Over $100 Million in Undeclared Income
According to the Economic Times, India’s tax authorities have intensified scrutiny of cryptocurrency tax filings for FY 2026, identifying over ₹88.8 billion (approximately $104 million) in undeclared virtual digital asset income and issuing more than 44,000 notices to relevant taxpayers.
Navigating Web3 tides with focused insightsTechFlow News, June 14: According to the Economic Times, India’s cryptocurrency tax filing season for FY 2026 imposes stricter compliance requirements on investors. Profits from virtual digital assets (VDAs) remain subject to a 30% tax rate, along with a 1% tax deducted at source (TDS). Investors must report each transaction, exchange, and disposal of VDAs individually in Schedule VDA.
Additionally, the FY 2026 budget mandates that cryptocurrency exchanges, custodians, and wallet service providers submit user-level transaction data to the Indian tax authorities. The tax system will automatically cross-verify this data against taxpayers’ filings to enhance its ability to track unreported income.
The report states that the Indian tax authorities have issued over 44,000 compliance notices and identified approximately ₹88.8 billion (about $104 million) in undisclosed VDA income, indicating a marked intensification of regulatory scrutiny over cryptocurrency tax compliance.
