India Launches Nationwide Probe into Undisclosed Cryptocurrency Gains
India's Income Tax Department is investigating over 400 traders for moving cryptocurrency profits offshore to evade a 30% tax and a 1% transaction levy.
- Regional offices must submit their findings this quarter.
- Authorities are examining blockchain, remittance, and bank records to trace undeclared funds.
Penalties and Data Sharing
- Tax evasion could result in fines up to 42% of hidden income and possible prosecution.
- Binance is aiding by sharing transaction data to identify Indian users with offshore accounts.
Policy Implications
- The initiative seeks to integrate crypto into India's tax system fully.
- Combining exchange data with audits aims to eliminate loopholes and ensure equal treatment of digital and traditional assets.