India's tax authority is intensifying efforts to track crypto income, sending notices to taxpayers for unreported virtual asset gains. The Central Board of Direct Taxes is scrutinizing crypto trades in tax returns, with discrepancies between TDS reports from exchanges and income tax filings triggering alerts. Section 115BBH imposes a 30% tax on VDA gains, disallowing deductions or loss offsets. The tax body's data-driven approach aims to prompt compliance without aggressive measures, leveraging bank data, VASP filings, and blockchain analysis. Traders now face heightened scrutiny, with missed VDA disclosures leading to penalties. Exchanges are under pressure to ensure accurate reporting to avoid further investigations. The industry's response remains uncertain, with potential shifts towards improved record-keeping or reduced trading activity to mitigate tax liabilities. Clear enforcement may attract more institutional players to the market. Read more AI-generated news on: https://app.chaingpt.org/news