Indian Government Reveals Crypto Tax Measures to Strengthen Compliance Oversight

Crypto tax enforcement in India is entering a new phase as the government adopts data analytics, AI tools, and forensic training to clamp down on digital asset tax evasion. With a focus on transparency and accountability, India’s revenue from crypto taxes has surged, signaling stronger regulatory oversight across the virtual asset space.

Government Tracks VDA Tax Evasion with Forensic Precision

Addressing the Lok Sabha, Minister of State for Finance Pankaj Chaudhary disclosed that India collected ₹269.09 crore in crypto taxes in FY 2022–23, followed by ₹437.43 crore in FY 2023–24. Figures for the current fiscal year are pending. The tax regime—established under section 115BBH of the Income Tax Act—imposes a flat 30% tax on gains from crypto transfers and a 1% Tax Deducted at Source (TDS) on transactions above set thresholds.

While India hasn’t officially calculated how much is lost to underreporting or non-compliance, officials are actively tracing tax evasion using advanced tools. These include Project Insight, the Non-Filer Monitoring System (NMS), and internal analytics to compare declared income with TDS records. Under the NUDGE initiative, any discrepancy above ₹1 lakh where TDS is filed but income is not reported is prompting follow-up actions.

India Bolsters Crypto Oversight Through Officer Training

The government is also investing heavily in training its personnel to handle the complexities of virtual digital assets. Officers are receiving instruction through digital forensics workshops, blockchain analysis labs, and legal compliance seminars. These are hosted by Income Tax Department institutes and supported by partnerships with institutions like the National Forensic Science University in Goa, which offers specialized short courses in tracking blockchain-based transactions.

Meanwhile, international crypto players are aligning with Indian regulations. Bybit, a global exchange, recently started applying 18% GST to its service fees for Indian users, complying with India’s tax code for services offered to residents.

India’s approach blends robust data-driven enforcement with skill-building, signaling that crypto tax compliance will remain a top priority in the country’s financial governance.

Make money without lifting your fingers: Start using a world-class auto trading solution.

EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.