India plans tougher crypto rules after tax data mismatch

India is planning to further tighten scrutiny of cryptocurrency transactions and preparing to make third-party reporting by crypto exchanges and banks mandatory from 1 April, said two people aware of the development.

- Saubhadra Chatterji & Rajeev Jayaswal

The CBDT is framing the rules, which will be notified soon.

"Through its e-verification process, the Income-Tax Department has found data mismatch in more than 4,500 cases involving VDA (virtual digital asset) transactions and is investigating discrepancies," the first person quoted above said, asking not to be identified. He cited a presentation made by the Central Board of Direct Taxes (CBDT) to the Parliamentary Standing Committee on Finance.

The finance ministry did not respond to an emailed query.