The Tax Authorities of India have discovered nearly 630 Crore-Callions (approximately $ 72 million) in non-known income made from crypto-related transactions, according to a disclosure of 5 August by Pankaj Chaudary, the Minister of Foreign Affairs.
The minister, with reference to figures from the Central Board or Direct Taxes (CBDT), stated that the figures reflect the discrepancies in tax applications that have been linked to Virtual Digital Asset (VDA) transactions.
In addition to this revelation, the minister also confirmed that the government has collected 705 crore -calls (more than $ 80 million) in taxes on crypto winsts in the past two financial years.
This income comes from users who have voluntarily reported income from digital assets such as Bitcoin introduced under the tax regime in April 2022.
Tackle tax evasion
In order to tackle the considerable amount of the unauthorized tax revenues, the Indian authorities have issued more than 44,000 notifications to private individuals and organizations that have not reported crypto-related income.
The authorities stated that this enforcement is part of a broader strategy to bring transparency to the digital assets economy and to guarantee a stronger culture of tax conformity.
Chaudary also revealed that CBDT has implemented various data analysis tools, including the Non-Filer Monitoring System (NMS) and Project Insight, to improve the accuracy of the reports.
These Systems Cross-reference VDA transaction data with disclosure tax (ITRS) and TDS declarations that have been tabled by virtual asseters (VASPs), allowing authorities to recognize discrepancies and appropriate action.
However, some market leaders claim that the current tax structure can be counterproductive.
Coindcx CEO Sumit Gupta pointed out that the combination of a capital gain tax of 30% and a tax of 1% on the source on every trade has driven millions of Indian traders to offshore platforms, where supervision is limited. This shift not only weakens local participation, but also affects potential income.
Gupta suggests that India could be able to stimulate its annual crypto -tax intake, possibly more than £ 5,000 crore, by making the domestic trade environment more competitive. He claims that a more balanced policy would encourage long-term investments and reduce the attraction of offshore exchanges, so that India releases the way to become a global hub for digital financing.