Indian Government Reveals Crypto Tax Measures to Strengthen Compliance Oversight
Main Idea
The Indian government has implemented comprehensive tax measures on cryptocurrency transactions to strengthen compliance, utilizing data analytics to track tax evasion and reporting significant tax collections in recent fiscal years.
Key Points
1. Tax on virtual digital assets (VDAs) and cryptocurrencies, implemented under section 115BBH of the Income Tax Act, collected ₹269.09 crore in 2022–23 and ₹437.43 crore in 2023–24.
2. The government uses tools like the Non-Filer Monitoring System (NMS), Project Insight, and internal databases to track tax evasion in VDA transactions.
3. A flat 30% income tax is imposed on gains from transferring VDAs, with no deductions except acquisition cost, and a 1% TDS applies to transfers exceeding certain thresholds.
4. An 18% Goods and Services Tax (GST) is levied on service fees for Indian users from July 7, aligning with Indian laws requiring GST on services.
5. The government is conducting training programs, workshops, and hands-on sessions for the Income Tax Department to improve handling of digital evidence and compliance.
Description
India is unleashing cutting-edge data analytics and forensic tech to crack down on crypto tax evasion, driving aggressive enforcement and surging digital asset revenue collection. Government Uses Data Analytics to Track Tax Evasion on Digital Assets The government of India provided an update early this week in the Lok Sabha, the lower house of India’s
Latest News
- Bitgo Lands in Brazil, Targeting Banks Entering the Crypto Business2025-07-27 10:44:49
- Nigeria Details Rules for Foreign Crypto Firms, Digital Asset Marketing2025-07-27 09:40:58
- Ledn Launches Private Wealth Program for High-Net-Worth Bitcoin Investors2025-07-27 08:37:52
- Ether ETFs Close Week With $453 Million Surge as Bitcoin ETFs Add $131 Million2025-07-27 07:51:19
- India’s Crypto Crossroads: COINS Act 2025 Offers a ‘Rights-First’ Roadmap2025-07-27 06:34:26