Latest news with #VDAs
&w=3840&q=100)
First Post
7 hours ago
- Business
- First Post
India's crypto tax collections soar to Rs 437 cr, a 62% jump: Govt data
The Indian government collected ₹437.43 crore in income tax from cryptocurrencies and other virtual digital assets (VDAs) in FY2023-24, a 62.5% jump from the previous year. Officials are using data analytics tools and targeted campaigns like NUDGE to track unreported transactions and crack down on crypto tax evasion read more The Indian government has collected Rs 437.43 crores in income tax on cryptocurrencies and other virtual digital assets (VDAs) in the fiscal year 2023-2024, stated Pankaj Chaudhary, Minister of State in the Ministry of Finance, in a written statement to the Lok Sabha on July 21. In FY22-23, the income tax collected on cryptocurrency was approximately Rs 269.09 crores, up nearly 62.5 percent year on year as of FY24. However, the government does not have the most recent figures for FY24-25 because the tax filing deadline is still in effect. STORY CONTINUES BELOW THIS AD This is the first time the government has revealed the specifics of cryptocurrency taxes collected since they were imposed in 2022. The government had imposed a 30% tax on gains from VDAs and a 1% TDS (tax deducted at source) on all transactions worth Rs 10,000 or more. In answer to a query, Chaudhary stated, 'The Government is utilizing data analytics tools to trace and detect tax evasion from VDA related transactions. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer.' Chaudhary also stated that the Central Board of Direct Taxes has launched NUDGE (Non-Intrusive Use of Data to Guide and Enable) campaign to discover such anomalies for further action. He said, 'Under NUDGE campaign suitable communications, to review and update their income tax returns, were issued to all taxpayers who did not report VDA related transactions in their income tax returns, despite tax being deducted at source for such transactions by VASPs, where the quantum of such discrepancy was more than Rs 1 lakh.' STORY CONTINUES BELOW THIS AD Moneycontrol exclusively reported in April 2025 that several crypto investors were starting to get income tax notices from the IT Department for failing to pay taxes on peer-to-peer (P2P) trading conducted through foreign exchange. The government is also strengthening its staff through capacity-building measures that will provide officers with training programs, specialised seminars, Chintan Shivirs, and hands-on workshops to enable efficient compliance monitoring and investigation of VDA-related transactions. Chaudhary said, 'At local level, field offices conduct training sessions and webinars on digital forensics, Blockchain analysis, legal frameworks, and handling of digital evidence. The officers and officials are also imparted short term training on digital forensics, in partnership with National Forensic Science University (NFSU), Goa, which empower them to identify and trace VDA related transactions from data captured during intrusive actions.'
Indian Express
a day ago
- Business
- Indian Express
Govt collected Rs 437 crore as income tax from crypto in FY24, up 63% from FY23
The government collected Rs 437.43 crore as income tax on gains from cryptocurrencies – or Virtual Digital Assets (VDA), as they are called legally – in 2023-24, up 63 per cent from the previous year, the Finance Ministry said on Monday. In a written response to a question in the Lok Sabha on the first day of the Monsoon Session of Parliament, Minister of State for Finance Pankaj Chaudhary said that the tax collected on income from VDAs in 2022-23 was Rs 269.09 crore. This rose to 437.43 crore in 2023-24. Data for 2024-25 is not available yet as the due date for filing income tax returns for the year has not passed, Chaudhary said. While India at present does not have any law regulating crypto, the government introduced a flat 30 per cent tax on profit generated through the sale of VDAs starting April 2022, with losses made on the sale of these assets not permitted to be set-off against any other income or be carried forward. Later, starting July 2022, a 1 per cent tax deducted at source (TDS) on cryptocurrency transactions came into effect. 'The Government is utilising data analytics tools to trace and detect tax evasion from VDA related transactions. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer,' Chaudhary further said. He added that while VDA transactions filed in income tax returns were not being matched in real-time with information filed by Virtual Asset Service Providers (VASPs), the TDS returns of these service providers and income tax returns filed by taxpayers were being analysed to identify any discrepancies in reporting of crypto transactions. 'Central Board of Direct Taxes has initiated NUDGE (Non-Intrusive use of Data to Guide and Enable) campaign to identify such discrepancies for further action. Under NUDGE campaign suitable communications, to review and update their income tax returns, were issued to all taxpayers who did not report VDA related transactions in their income tax returns, despite tax being deducted at source for such transactions by VASPs, where the quantum of such discrepancy was more than Rs 1 lakh,' Chaudhary said. The Indian Express had reported last month, quoting sources, that the income tax department is investigating tax evasion and laundering of unaccounted income by high-risk persons through investments in VDAs, with analysis of crypto transaction data showing 'significant violations' of income tax rules. In his response in the Lok Sabha on Monday, the Minister of State for Finance said the government had not made any estimate regarding the projected revenue loss due to under-reporting or misreporting of income from VDA or crypto transactions. The information from the finance ministry on the income tax collected from crypto comes a day after CoinDCX, one of India's leading cryptocurrency exchanges, disclosed that it had suffered a loss of around $44 million, roughly Rs 379 crore, due to a security breach. Meanwhile, another leading Indian crypto firm WazirX was hit by a cyberattack last year which saw hackers allegedly steal more than $230 million of users' holdings. According to a December 2024 paper by New Delhi-based tech policy think-tank Esya Centre, analysis of relevant transaction data from December 2023 to October 2024 showed that Indians traded more than Rs 2.63 lakh crore on offshore crypto platforms, which corresponds to Rs 2,634 crore in TDS owed by offshore platforms. According to the think-tank, the total TDS that has not been collected from offshore exchanges since July 2022 possibly exceeds Rs 6,000 crore. Over the next five years, the think-tank projected, total crypto trading by Indians on offshore platforms could lead to more than Rs 17,000 crore of uncollected TDS. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
Economic Times
14-06-2025
- Business
- Economic Times
Explained: CBDT targets unaccounted income invested in crypto
The Central Board of Direct Taxes (CBDT) is investigating tax evasion and the laundering of undeclared money by high-risk individuals who have invested in cryptocurrency or virtual digital assets (VDAs). Why is the tax body doing this? The main reason is to curb tax evasion and the laundering of unaccounted funds. Sources told PTI that the CBDT has identified some "high-risk persons" who are putting money in VDAs but have not complied with the Income Tax Act. Data reviewed by the I-T department showed violations such as not filing the mandatory Schedule VDA in their income tax returns (ITRs), paying tax at lower rates, or wrongly claiming cost indexation. The tax body is matching ITRs filed by taxpayers with the TDS data submitted by crypto exchanges to identify taxpayers who have wrongly declared their crypto income. CBDT has recently embarked on a new approach termed NUDGE (Non-intrusive Usage of Data to Guide and Enable) Taxpayers, as part of the TRUST Taxpayers FIRST philosophy. Under this, the CBDT is reaching out to thousands of individuals, asking them to review their returns or update them if their transactions are not properly declared. This is to give people a chance to voluntarily comply before stringent actions are taken. Beyond taxation, the government has shown concern about the likely misuse of cryptocurrencies for illegal activities such as terror financing and money laundering. Existing framework India has not formally recognised cryptocurrency as a legal tender, but the government introduced a taxation framework for VDAs in 2022. This includes: A flat 30% tax on income from VDA transfers. A 1% tax deducted at source (TDS) on the sale consideration of VDAs. No deduction of any expenses (except the cost of acquisition) is allowed. Losses from VDA investments or trading cannot be set off against any other income or carried forward to subsequent years.
Time of India
14-06-2025
- Business
- Time of India
Explained: CBDT targets unaccounted income invested in crypto
The Central Board of Direct Taxes ( CBDT ) is investigating tax evasion and the laundering of undeclared money by high-risk individuals who have invested in cryptocurrency or virtual digital assets ( VDAs ). Why is the tax body doing this? The main reason is to curb tax evasion and the laundering of unaccounted funds. Sources told PTI that the CBDT has identified some "high-risk persons" who are putting money in VDAs but have not complied with the Income Tax Act. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: 1 simple trick to get all TV channels Techno Mag Learn More Undo Data reviewed by the I-T department showed violations such as not filing the mandatory Schedule VDA in their income tax returns (ITRs), paying tax at lower rates, or wrongly claiming cost indexation. The tax body is matching ITRs filed by taxpayers with the TDS data submitted by crypto exchanges to identify taxpayers who have wrongly declared their crypto income. Live Events CBDT has recently embarked on a new approach termed NUDGE (Non-intrusive Usage of Data to Guide and Enable) Taxpayers, as part of the TRUST Taxpayers FIRST philosophy. Under this, the CBDT is reaching out to thousands of individuals, asking them to review their returns or update them if their transactions are not properly declared. This is to give people a chance to voluntarily comply before stringent actions are taken. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Beyond taxation, the government has shown concern about the likely misuse of cryptocurrencies for illegal activities such as terror financing and money laundering . Existing framework India has not formally recognised cryptocurrency as a legal tender, but the government introduced a taxation framework for VDAs in 2022. This includes: A flat 30% tax on income from VDA transfers. A 1% tax deducted at source (TDS) on the sale consideration of VDAs. No deduction of any expenses (except the cost of acquisition) is allowed. Losses from VDA investments or trading cannot be set off against any other income or carried forward to subsequent years.
Indian Express
13-06-2025
- Business
- Indian Express
Income Tax Department investigating evasion from crypto assets
The Income Tax Department is investigating tax evasion and laundering of unaccounted income by high-risk persons through investments in virtual digital assets (VDAs) after its data analytics showed 'significant violations' of income tax rules by individuals in transactions involving crypto assets, sources said. The Department under the Central Board of Direct Taxes (CBDT) has identified such crypto transactions for verifications and has sent emails to defaulting persons to review their income tax returns (ITRs) to update any income that has not been properly declared on account of VDA transactions, they said. 'Data analytics has shown that a significant number of persons have violated provisions of Income-tax Act by not filing Schedule VDA of ITR and offering tax on the income earned at a lower rate or claiming cost indexation. ITRs filed by taxpayers are being verified with TDS returns filed by the Virtual Asset Service Providers (VASPs) popularly known as crypto exchanges and defaulters may be selected for further verification or scrutiny,' a source said. India had introduced a 30 per cent flat income tax on gains made from cryptocurrencies from April 2022 after inserting Section 115BBH in the Income Tax Act, 1961 by the Finance Act, 2022. In July 2022, rules regarding 1 per cent tax deducted at source (TDS) on cryptocurrency came into effect. The provision does not allow deduction of any expenses except cost of acquisition. Also, set-off of loss from VDA investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. 'Such entities and individuals which are engaged in Virtual Digital Asset (VDA) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification…the CBDT has recently sent emails to thousands of defaulting persons to review their ITRs and update if any income on account of VDA transactions have not been properly declared,' a source said. This is the third such 'NUDGE (Non-intrusive Usage of Data to Guide and Enable)' campaign by the CBDT in the last six months. Earlier campaigns were linked to declaration of foreign assets and income by taxpayers and withdrawal of bogus claims of deduction under Section 80GGC of the I-T Act. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
