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Informist, Friday, Jun. 13, 2025

 

--CBDT sources: Verifying tax returns with TDS filed by crypto exchanges 
--CBDT sources: Many individuals not disclosing crypto deals under tax returns 
--CBDT sources: Probing tax evasion, money laundering via crypto currency 

 

NEW DELHI – The finance ministry is investigating tax evasion and money laundering by high-risk individuals through investments in virtual digital assets, popularly known as cryptocurrencies, sources from the Central Board of Direct Taxes said. CBDT has data, as per which they have learnt that many individuals who are involved in transaction of cryptocurrencies have not disclosed these trades in their income tax returns for assessment year 2023-24 and 2024-25, the sources said.

 

The government levies an income tax of 30% on gains from virtual digital assets in addition to cess and surcharge. It also deducts 1% tax at source on transactions of such assets. As the Reserve Bank of India does not recognise cryptocurrencies as a 'currency', the government has classified it as an asset, and refers to it as virtual digital assets in the Income Tax Act.    

 

The finance ministry is "verifying income tax returns filed by taxpayers with TDS returns filed by the Virtual Asset Service Providers also known as crypto exchanges," one of the CBDT sources said. "Defaulters may be selected for further verification/ scrutiny."

 

According to the sources, CBDT has sent e-mails to thousands of defaulting persons to review their tax returns and update if any income on account of virtual digital asset transactions has not been properly declared.  End

 

Reported by Krity Ambey

Edited by Deepshikha Bhardwaj

 

 

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