Unreported crypto earnings to face scrutiny from the I-T dept (original) (raw)

Unreported crypto earnings to face scrutiny from the I-T dept

ET TEAMLast Updated: Feb 02, 2025, 07:23:00 AM IST

Synopsis

Tax officials would scrutinise unreported crypto earnings during searches and reassessments, while from next year crypto platforms and intermediaries would begin reporting large deals to the I-T department as banks, mutual funds, and property registrars do.

ET TEAM

Cryptos would come under a sharper glare from the taxman.

Emerging crypto asset classes like utility tokens, security tokens, crypto derivatives such as futures and options would be caught in the tax net with the budget broadening the definition of virtual digital assets (VDAs).

Thus, tax authorities can now assess undisclosed income from VDAs for up to six previous assessment years during search operations. Expanding the scope, the budget includes crypto assets relying on cryptographic security and distributed ledger technology under VDAs.

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The proposals come at a time global markets are in the midst of a crypto frenzy and large PE firms like Blackrock and Fidelity have launched billion-dollar crypto exchange-traded funds (ETFs) approved by regulators in the US, UK, and Singapore.

Cryptos are heavily taxed in India: trade profits are taxed at 30%, transactions attract TDS, and gains cannot be against losses.

Unreported crypto earnings to face scrutiny from the I-T dept (original) (raw)

Tax officials would scrutinise unreported crypto earnings during searches and reassessments, while from next year crypto platforms and intermediaries would begin reporting large deals to the I-T department as banks, mutual funds, and property registrars do.

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