Crypto trades: 3rd-party reporting rules from April

CBDT IS FRAMING THE RULES WHICH WILL BE NOTIFIED SOON AND THE PROVISION COULD BE ENFORCED FROM APRIL 1

- Saubhadra Chatterji & Rajeev Jayaswal

India plans to further tighten its regulation of cryptocurrency tractions and could mandate third party reporting from April, two people aware of the development said.

It has already put over 4,500 suspected cases involving virtual digital assets (VDAs) under the scanner, they added, asking not to be named.

Citing a presentation made by the Central Board of Direct Taxes (CBDT) to the Standing Committee on Finance, one of them saic “Through its e-verification process, the Income-Tax Department has found data mismatch in more than 4,500 cases involving VDA transactions and is investigating discripiciencies.”

The finance ministry did not respond to an email query. CBDT isan arm of the revenue department of the finance ministry and it regulates activities of the income-tax department.