India Collects ₹705 Cr in Crypto Taxes Under New VDA Regime

India’s tax authorities reveal nearly ₹630 Cr in hidden crypto income, issuing over 44,000 notices and deploying advanced data tools to enhance transparency in the digital asset market.

210d ago

Summary

India’s tax authorities discovered approximately ₹630 Cr ($72 million) in unreported income from crypto transactions, as disclosed by Finance Minister Pankaj Chaudhary on Aug. 5. The CBDT issued over 44,000 notices and deployed tools like the Non-Filer Monitoring System and Project Insight to cross-reference taxpayer data. Despite collecting ₹705 Cr in taxes over two financial years, industry voices, including CoinDCX CEO Sumit Gupta, warn that high tax rates may drive traders offshore.

Terms & Concepts

VDA tax regime: A framework introduced in India to tax transactions involving virtual digital assets.
Non-Filer Monitoring System (NMS): A data analysis tool used by Indian tax authorities to detect discrepancies in tax filings related to digital asset transactions.
Project Insight: A system implemented by the CBDT to cross-reference virtual asset transaction data with taxpayer disclosures for improved reporting accuracy.