Crypto Alert: India Cracks Down on Unreported Crypto Transactions



The government has stepped up enforcement and tax detection in crypto:

ED Actions:
🔹 ₹4,189.89 crore in crypto-related proceeds attached/frozen under PMLA
🔹 29 arrests & 22 prosecution complaints filed
🔹 1 person declared a Fugitive Economic Offender

CBDT Tax Detection:
🔹 ₹888.82 crore of undisclosed crypto/Virtual Digital Asset (VDA) income detected
🔹 44,057 taxpayers sent notices under the NUDGE campaign for unreported crypto transactions

Regulatory & Tax Update:
🔹 Crypto/VDAs remain unregulated in India
🔹 Tax rules: 30% flat tax on gains, 1% TDS, no loss set-off between VDAs
🔹 VDAs covered under PMLA since March 2023
How Authorities Detect Non-Compliance:
🔹 Data analytics, Project Insight, and TDS vs ITR checks to identify discrepancies

The government is keeping crypto heavily taxed while strengthening compliance. Make sure your crypto reporting is up to date!

Source: Minister of State for Finance Pankaj Chaudhary, Lok Sabha, Dec 8, 2025
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