Indian Crypto Traders Face Tax Scrutiny as Government Intensifies Oversight
Indian cryptocurrency traders are under heightened scrutiny as the Income Tax Department issues notices targeting undeclared crypto trading income. The government's proactive approach signals a new era of compliance enforcement in the digital asset space.
Authorities are leveraging advanced tracking mechanisms, including PAN-linked data and exchange-reported TDS deductions, to identify discrepancies. Notices reference specific transaction details from the 2024-25 assessment year, eliminating any ambiguity about the government's access to trading records.
The crackdown reflects broader global trends toward cryptocurrency regulation. While this increases compliance burdens for traders, it also legitimizes crypto as a taxable asset class—a double-edged sword for market participants.
