- India cracks down on massive foreign asset and crypto tax evasion.
- CBDT’s data-driven campaign exposes billions in hidden wealth and income.
- Crypto market faces intense scrutiny amid record tax enforcement drive.
India’s Ministry of Finance has revealed the detection of ₹29,208 crore in undisclosed foreign assets for the 2024-25 assessment year, according to the Central Board of Direct Taxes (CBDT). This means authorities detected ₹1,089 crores of unreported foreign crypto income as part of a broad compliance exercise.
The CBDT has said that the findings were based on delayed income tax returns by 5,483 taxpayers. Data extracted in foreign jurisdictions was compared with local filings, and automated alerts were sent through SMS and email to those with inconsistencies.
Authorities stated that the operation was part of a significant “nudge campaign” to increase voluntary compliance. In this strategy, the targeted data analysis is employed instead of random audits to detect undeclared assets.
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Primary Focus on India’s Expanding Crypto Sector
In addition to foreign assets, the enforcement drive extended into India’s fast-growing cryptocurrency market. Tax audits and search operations have been conducted recently and have identified ₹630 crore of concealed crypto income. The Income Tax Department also confiscated digital assets to the tune of ₹2.7 crore from people who did not declare their holdings.
Officials have said that ₹705 crores of crypto-related taxation were received on a self-disclosure basis in the last two fiscal years. The magnitude of such initiatives identifies the nation as the global leader in grassroots adoption of crypto usage, with a model of more than 119 million active users.
Although trading crypto assets in India is legal, investors are taxed at a rate of 30 percent as capital gains taxes in addition to a withholding tax of 1 percent. Sector representatives have pressured the government to re-evaluate such rates to avoid the emigration of capital.
The government is now working on a new crypto policy paper for 2025, which is likely to target a balance in taxes and regulation. They have pointed out that oversight carried out using technology will continue to be central.
Conclusion
The CBDT’s findings reflect the combined challenge of tracking foreign assets and regulating the crypto industry. Authorities are intensifying efforts to secure tax compliance while preparing for future policy adjustments.
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