India Chases Crypto Tax Evaders With Over 44,000 Warning Notices

• Crypto traders across India are cautioned to report their transactions to avoid late penalties.
• India’s Finance Act of 2022 introduced a 30% flat tax on crypto gains.
• Crackdown on crypto traders is facilitated through registered crypto exchanges and P2P platforms.

India’s Income Tax Department has sent notices to 44,057 cryptocurrency traders who it believes failed to report their transactions for the 2025 financial year. 

In a massive outreach, authorities have warned traders to update their tax filings to avoid further scrutiny, penalties, or even prosecution.

High-Tech Push for Crypto Tax Compliance

As the government intensifies the scrutiny on crypto transactions using modern technology, including artificial intelligence (AI) and data analytics tools, it has become more difficult for Indian traders to evade. 

In a recent parliamentary reply, the tax department revealed that the government has collected ₹269.09 crore (approx. $32.2 million) in taxes from crypto income.

What Are India’s Crypto Tax Rules?

This enforcement action is based on the strict tax regime India implemented in 2022. The rules include a 30% flat tax on all income from…

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