India’s Income Tax Department has launched a major crackdown on crypto traders who failed to report their earnings. Over 44,000 notices and alerts were sent under the CBDT’s NUDGE campaign, targeting those who didn’t disclose Virtual Digital Asset (VDA) transactions in their tax returns. Using tools like Project Insight and the Non-Filer Monitoring System, authorities uncovered ₹630 crore ($75M) in unreported income and collected ₹705 crore ($80M) in taxes for FY23–24.
Despite a lack of clear crypto regulations, India enforces a strict tax regime on crypto, including a 30% tax on VDA income, 1% TDS on certain transactions, and 18% GST on services.
