Recent actions by the Indian Tax Department highlight increasing regulation in the digital asset space.
Overview of the Notice Situation
The Indian Tax Department has sent over 44,000 notices to crypto traders who failed to report their transactions in Income Tax Returns. These measures are part of efforts to enhance control over Virtual Digital Assets like Bitcoin and Ethereum.
Uncovered Hidden Assets
Through a series of search and seizure operations, ₹630 crore of undisclosed income was discovered. These hidden funds were tracked using blockchain activity, suspicious wallet addresses, and exchange records. Authorities emphasized that such actions are aimed at increasing transparency and ensuring tax compliance.
Impact on the Crypto Market in India
Crypto traders in India are facing challenges due to strict tax regulations and a lack of clear regulatory frameworks. While the 30% profit tax and 1% TDS create uncertainty in the market, initiatives like the proposed COINS Act 2025 could lead to improvements in the future.
The Indian crypto industry is experiencing a complicated landscape due to increased regulatory pressures. However, the introduction of new legislation and initiatives may pave the way for a more stable and transparent environment for digital assets.
