Indian Crypto Traders Get Tax Notices as Government Tightens Oversight
This clearly shows that the government already has access to crypto transaction data and is now actively cross-checking it with tax filings.
How the Government Is Tracking Crypto Transactions
Crypto trading in India is no longer flying under the radar. Authorities are tracking transactions through multiple verified sources, including:
- Indian crypto exchanges that follow strict KYC rules
- TDS deductions on crypto trades and clear bank transaction trails
- AIS and TIS reporting systems linked directly to PAN numbers
This means that anyone trading crypto using Indian exchanges or a KYC-linked platform, their activity is already visible to tax authorities.
No More Warning, Action Time
The key takeaway is that this is not a warning phase anymore. It is an enforcement phase. The tax department is no longer asking questions; it is asking for explanations backed by records.
For traders who did not properly report crypto gains, this could lead to penalties, interest, or further scrutiny.
Is Crypto Trading Getting Difficult in India?
Crypto trading in India is becoming more regulated, especially for everyday traders. Strict tax rules now apply, including a 30% tax on profits with no loss adjustment and a 1% TDS on most trades.
Meanwhile, these rules make quick trading and frequent buying and selling less attractive.
However, some traders see this as a positive step. Crypto is no longer ignored or treated as illegal. It is now officially recognized and taxed, which could bring more transparency and long-term trust to India’s crypto market.
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