It’s getting harder and harder to be a crypto enthusiast in India — and here’s a real story that proves it.
Kuldeep (name changed), a small-time investor, sold crypto worth ₹98,500 in 2022 through P2P (peer-to-peer) transactions, earning a modest profit of ₹1,500. The full amount of ₹1,00,000 was deposited into his bank account via a centralized exchange.
Like any responsible citizen, he kept records of his trades, including:
Screenshots of the transactions
Official exchange statements
But guess what? None of that mattered.
A few weeks ago, Kuldeep received a notice from the Income Tax Department, flagging the ₹1L deposit as unexplained income. Despite presenting all his proofs, he was slapped with a whopping 78% penalty — ₹78,000 — on a tiny profit of ₹1,500.
Let that sink in.
A system that’s supposed to encourage financial inclusion and transparency is punishing ordinary citizens for simply trying to participate in the global digital economy.
What message does this send to young investors?
Is this the future of financial freedom in India?
Should we fear innovation now?
This isn’t just about one man. It’s about the growing gap between innovation and regulation. And until there’s clear, fair, and updated tax policy around crypto in India, more honest users could face the same fate.
Stay aware. Stay cautious. Keep your documents ready.
But most importantly, keep pushing for clarity and reform.
#CryptoIndia #CryptoTax #IncomeTaxIndia #STAYSAFU #CryptoRegulations
