<ul data-eligibleForWebStory="true"><li>CBDT has flagged widespread tax evasion and laundering of unaccounted income through cryptocurrency transactions by high-risk individuals and entities.</li><li>The crackdown follows data-driven analysis revealing violations in reporting Virtual Digital Asset (VDA) income.</li><li>CBDT is actively investigating cases of failure to disclose crypto income or underreporting it, violating provisions under the Income Tax Act, 1961.</li><li>Income from VDAs is taxed at a flat rate of 30% under Section 115BBH with no deductions except for the cost of acquisition.</li><li>Losses from VDA trading/investment cannot be set off against other income or carried forward.</li><li>Cross-verification of ITRs with TDS data identified thousands of discrepancies, leading to emails sent to individuals for filing updates.</li><li>CBDT's compliance initiative under the NUDGE framework enforces tax compliance and marks the third campaign in six months focused on various financial areas.</li><li>The campaign highlights regulatory scrutiny on virtual assets, emphasizing full tax compliance for investors and traders.</li></ul>

CBDT Flags Widespread Crypto Tax Evasion; Thousands Receive Compliance Notices

Discover more