India's tax department is stepping up the pursuit of crypto profits, issuing notices to taxpaying individuals for not reporting virtual asset income. The Central Board of Direct Taxes is checking crypto transactions in tax returns, with differences between TDS reports from exchanges and income tax returns setting off alarms. Section 115BBH subjects VDA profits to a 30% tax, with no deductions or netting against losses. The tax authority's data-driven strategy seeks to induce compliance through less forceful means, utilizing bank data, VASP reports, and blockchain analysis. Traders are now under increased scrutiny, with failure to disclose VDA occasioning fines. Exchanges are being squeezed to produce accurate reporting so as not to face additional investigations. The industry reaction is unclear, with possible moves towards better record-keeping or decreased trading activity to cut tax bills. Clarity in enforcement will bring in more institutional participants to the market.