Crypto Income On I-T Radar; Dept Sends Emails To Individuals

The Income Tax Department has sent a communication to thousands of individuals who have undertaken cryptocurrency transactions but failed to reflect this income in their returns, official sources said Friday.

- Press Trust Of India

These transactions pertain to assessment years 2023-24 and 2024-25, they said.

The department and its policy-making body, the Central Board of Direct Taxes (CBDT), suspect tax evasion and money laundering by certain "high-risk" people who are potentially using "unaccounted” income to invest in virtual digital assets (VDAs), commonly known as cryptocurrency.

Sources told PTI that the I-T Department has sent e-mails to thousands of defaulting people nudging them to file an updated Income Tax Return (ITR) if any income on account of crypto transactions has not been declared or mis-declared by them.