As of June 13, 2025, official sources report that the CBDT is focusing its scrutiny on high-risk individuals and entitieswho have been actively engaged in Virtual Digital Asset (VDA) transactions. These include activities such as trading, holding, or converting cryptocurrencies like Bitcoin, Ethereum, and other digital tokens that fall under the VDA category as defined by the Income-tax Act, 1961.
The department has identified a set of such entities and individuals who appear to have failed to disclose their crypto-related income or gains in their income tax returns. Additionally, many of these cases show discrepancies in the reported financial data—including undeclared foreign holdings, lack of TDS compliance, and mismatches between bank transactions and income declarations.
The verification process involves:
This crackdown follows rising concerns over the use of cryptocurrency platforms as a channel for concealing black money, bypassing banking channels, and evading tax obligations. Notices are expected to be issued shortly to the identified taxpayers, requiring them to furnish explanations, supporting documents, or face penalties and potential prosecution under the Income-tax Act.
