India's Income Tax Department has launched a crackdown on potential tax evasion linked to cryptocurrencies, identifying individuals and entities who failed to comply with the Income Tax Act. The Central Board of Direct Taxes has sent emails urging thousands to review their tax returns for any misreported crypto income. This initiative is part of the broader NUDGE campaign aimed at promoting voluntary compliance. Since April 2022, income from virtual digital asset transfers has been taxable at a flat rate of 30%. The investigation has revealed discrepancies through data analytics, including mismatches between tax returns and filings by crypto exchanges.