What’s Happening?
The Central Board of Direct Taxes (CBDT) in India is investigating possible tax evasion by individuals who have made large or suspicious investments in cryptocurrencies.
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💡 Key Points:
• High-risk individuals: These are people flagged for unusual or high-volume crypto transactions — often not matching their declared income.
• Tax evasion: The concern is that these investors haven’t properly reported crypto gains in their income tax returns or may have used crypto to launder money.
• Data-driven probe: The CBDT is using AI, data analytics, and information from exchanges and financial institutions to trace crypto activity and link it to PAN numbers.
• Global cooperation: Some cases may involve offshore exchanges or wallets, which could bring FEMA or black money laws into play.
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🧾 Why This Matters:
Crypto in India is taxable — 30% on gains plus 1% TDS. If investors try to hide or underreport these, it’s a serious violation that can trigger penalties, prosecution, or seizure of assets.
