India Launches Nationwide Crackdown on Crypto Tax Evasion

India’s tax authorities have opened hundreds of investigations into crypto traders suspected of hiding offshore profits and evading disclosure laws.

India’s Income Tax Department has opened a nationwide probe into undisclosed cryptocurrency gains. Over 400 traders are reportedly under review for shifting profits offshore to avoid the 30% tax on digital assets and the 1% transaction levy.

Wider Enforcement Push
Regional offices have been ordered to submit findings this quarter. Investigators say many users relied on foreign exchanges or stablecoins to hide earnings. Authorities are now cross-checking blockchain activity, remittance data, and bank records to trace undeclared funds.

Penalties and Data Access
Those caught evading taxes could face fines of up to 42% of hidden income and possible prosecution. Binance, now registered with India’s Financial Intelligence Unit, is sharing transaction data to help identify offshore accounts linked to Indian users.

Policy Direction
The campaign signals India’s effort to bring crypto fully under its tax regime. By combining exchange data with stricter audits, authorities aim to close loopholes and enforce equal treatment between digital and traditional assets.