Is Rs 630 Crore in Undisclosed Income from Crypto Transactions Revealed by the Government?
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Synopsis
The recent revelation by the Central Board of Direct Taxes regarding Rs 630 crore in undisclosed income from crypto transactions underscores the growing scrutiny of virtual assets. With new tax regulations in place, the government is taking steps to ensure compliance and transparency. Discover what this means for taxpayers and the future of cryptocurrency regulation in India.
Key Takeaways
- The CBDT has detected Rs 630 crore in undisclosed income from VDA transactions.
- New tax regulations for VDAs were implemented from FY 2022-23.
- The NUDGE initiative aims to enhance taxpayer awareness and compliance.
- Data analytics tools are being utilized to monitor VDA transactions.
- Tax evasion cases linked to cryptocurrency are under strict scrutiny.
New Delhi, Aug 5 (NationPress) The Central Board of Direct Taxes (CBDT) has uncovered nearly Rs 630 crore in undisclosed income linked to virtual digital asset (VDA) transactions over just two fiscal years, as Parliament was informed on Tuesday.
The tax on income derived from the transfer of VDAs, as stipulated under section 115BBH of the Income Tax Act, 1961, was introduced starting from FY 2022-23.
“The total tax amount declared by taxpayers for FY 2022-23 and FY 2023-24 reached Rs 705 crore. Moreover, during raid and survey operations, the undisclosed income arising from VDA transactions was approximately Rs 630 crore,” stated Minister of State for Finance, Pankaj Chaudhary, in a written response in the Rajya Sabha.
Instances of tax evasion associated with cryptocurrency and VDAs have been repeatedly identified by the CBDT, leading to necessary actions in accordance with the Income Tax Act, 1961.
To enhance taxpayer awareness regarding VDA disclosure and tax payment, the CBDT has initiated the NUDGE (Non-Intrusive Usage of Data to Guide and Enable) campaign, which has dispatched 44,057 emails and messages to selected taxpayers who engaged in VDA trading but failed to report these transactions in their Income Tax Returns (ITRs).
The CBDT has adopted several strategies to ensure precise reporting and taxation of cryptocurrency income, utilizing data analytics tools like the Non-Filer Monitoring System (NMS), Project Insight, and internal databases to link information on VDA transactions with taxpayer disclosures.
Additionally, TDS returns filed by Virtual Asset Service Providers (VASPs) and ITRs submitted by taxpayers are scrutinized to uncover inconsistencies in reported VDA transactions, prompting appropriate action, as noted by the minister.
Point of View
It is imperative to acknowledge the government's efforts in addressing tax evasion in the burgeoning cryptocurrency landscape. The CBDT's proactive approach signifies a commitment to fair taxation and transparency, which is vital for fostering trust among taxpayers and ensuring the integrity of the financial system.
NationPress
10/09/2025
Frequently Asked Questions
What is the total undisclosed income detected?
Approximately Rs 630 crore has been identified in undisclosed income from virtual digital asset transactions.
What measures are being taken by the CBDT?
The CBDT has launched the NUDGE campaign to educate taxpayers and ensure compliance with tax regulations.
When was the tax on VDA income introduced?
The tax on income from the transfer of VDAs was introduced from FY 2022-23.
