Crypto non filers face Income Tax heat; I T dept nudges investors to declare VDAs
The Income Tax Department in India is taking decisive steps to ensure compliance among cryptocurrency investors. The department has reportedly contacted thousands of individuals who have failed to declare their cryptocurrency transactions in their income tax returns, urging them to correct their filings. This initiative is part of a broader strategy to address potential tax evasion in the burgeoning digital asset sector.
With the rise of cryptocurrencies and NFTs, classified as ‘Virtual Digital Assets’, the Indian government has established a firm tax regime. Gains from the transfer of these assets are taxed at a flat rate of 30%, irrespective of whether they are considered business income or capital gains. In addition, a 1% Tax…
