Crypto income on IT radar; dept send emails to individuals

The Income Tax Department has intensified its surveillance of cryptocurrency transactions in India. The department is sending out emails and notices to individuals whose crypto trading activity does not seem to align with the income declared in their tax returns. By leveraging data analytics and information sourced from various channels, including crypto exchanges, the IT department is identifying potential cases of tax evasion. The focus is on ensuring compliance with the tax regulations for Virtual Digital Assets (VDAs), which include a flat 30% tax on gains and a 1% TDS on transactions. These communications are a clear signal to investors that all crypto-related income must be accurately reported. The department is urging taxpayers to file updated returns if they have omitted any crypto income, warning that failure to comply could lead to scrutiny, penalties, and legal action.