NEW DELHI: The income-tax department has detected cases of professionals moonlighting for overseas firms and receiving payments in cryptocurrencies that were not disclosed in their tax filings, people familiar with the matter said.

The department has begun sending out intimation emails to such taxpayers, seeking explanations for unreported income and foreign assets.

“Investigation has revealed that a large number of professionals in IT, education, auditors and various consultants were working for multiple overseas clients and received payments in crypto,” a senior official told ET, but declined to disclose the number of such people.

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In several cases, individuals…