Indian Crypto Traders Under Tax Scrutiny as Notices Surge
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Increased Tax Compliance: The Indian Income Tax Department has issued numerous tax notices for the Assessment Year 2024-25, demanding explanations for reported crypto income, indicating a significant increase in government scrutiny that could lead to penalties for unreported gains.
- Enhanced Trading Transparency: New tax regulations impose a flat 30% tax on profits and a 1% TDS on crypto transactions, which, while increasing compliance costs, also provide legal recognition for digital assets, potentially fostering market transparency and long-term trust.
- Shift in Regulatory Attitude: The Indian government is actively tracking crypto transactions through KYC-compliant platforms and bank records, marking a transition from lax regulation to stringent oversight, requiring traders to adapt to growing compliance demands.
- RBI's Criticism of Bitcoin: The Deputy Governor of the RBI criticized Bitcoin for lacking real economic value and emphasized its speculative nature, highlighting extreme volatility, which raises concerns among investors and may impact confidence in the crypto market.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
