{"id":13143,"date":"2025-10-11T14:17:45","date_gmt":"2025-10-11T14:17:45","guid":{"rendered":"https:\/\/bitunikey.com\/news\/india-widens-probe-into-unreported-crypto-income-on-binance\/"},"modified":"2025-10-11T14:17:47","modified_gmt":"2025-10-11T14:17:47","slug":"india-widens-probe-into-unreported-crypto-income-on-binance","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/india-widens-probe-into-unreported-crypto-income-on-binance\/","title":{"rendered":"India widens probe into unreported crypto income on Binance"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Indian tax authorities have launched a nationwide crackdown on hundreds of high-net-worth individuals accused of hiding cryptocurrency trades on Binance, the world\u2019s largest crypto exchange.<\/p>\n<div id=\"cn-block-summary-block_4d0d9492ea834f29c905833b2ec4dd66\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The Central Board of Direct Taxes (CBDT) has reportedly directed investigation wings across major cities to submit progress reports by Oct. 17, targeting traders who bypassed India\u2019s steep crypto taxes.<\/li>\n<li> Traders used offshore platforms, such as Binance, and peer-to-peer transfers, the CBDT alleges.<\/li>\n<li>The enforcement drive highlights how the government\u2019s data-driven compliance tools are closing long-standing gaps in crypto disclosure, signaling that the era of anonymity for Indian digital asset holders may be coming to an end.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p class=\"is-style-default\">Indian tax authorities are pursuing over 400 high-net-worth individuals across the country for concealing cryptocurrency trades on Binance between 2022-23 and 2024-25.<\/p>\n<p>The identified persons evaded tax on crypto profits, with many failing to disclose digital assets held in wallets with the world\u2019s largest cryptocurrency exchange.<\/p>\n<p>The Central Board of Direct Taxes has instructed investigation wings in different cities to report their actions by Oct. 17, according to sources familiar with the matter.<\/p>\n<p>Many traders used offshore platforms like Binance, hoping they could escape India\u2019s heavy crypto taxation.<\/p>\n<p>According to a report by <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/economictimes.indiatimes.com\/markets\/cryptocurrency\/binance-wallets-decryptedtaxman-moves-in-on-evaders\/articleshow\/124469585.cms?from=mdr\" target=\"_blank\" rel=\"nofollow\">The Economic Times<\/a>, this includes a 1% tax deducted at source on every sale plus total profit taxes ranging from 33% to 42% under various tax regimes.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h3 class=\"wp-block-heading\">P2P transactions face increased scrutiny<\/h3>\n<p>Tax office investigators are examining peer-to-peer trades on Binance that involved matching buyers and sellers in India, with settlements processed through domestic bank accounts, Google Pay, or in cash.<\/p>\n<p>Mumbai-based chartered accountant Siddharth Banwat noted that the tax department has the authority to issue a summons confirming proper reporting during income tax return filing.<\/p>\n<p>Taxpayers who took aggressive positions by not reporting income can rectify this through filing updated returns at an extra tax cost.<\/p>\n<p>The enforcement action shows India\u2019s strengthened compliance framework for virtual digital assets.<\/p>\n<p>Tax authorities now have access to transactional data from cryptocurrency exchanges, enabling the identification of mismatches and unreported income that previously went undetected.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h3 class=\"wp-block-heading\">Severe penalties await non-compliant traders<\/h3>\n<p>Ashish Karundia, founder of the CA firm Ashish Karundia &amp; Co., warned that the veil of anonymity protecting crypto traders is being lifted.<\/p>\n<p>Failure to accurately report virtual digital assets may trigger reassessment or scrutiny, with potential penalties under Section 270A.<\/p>\n<p>More seriously, omission from Schedule FA could attract the Black Money Act, bringing hefty fines and possible prosecution.<\/p>\n<p>Karundia advised taxpayers to undertake a comprehensive reconciliation of VDA activity and explore corrective mechanisms like updated returns before enforcement intensifies.<\/p>\n<p>Once authorities escalate enforcement actions, taxpayers may find themselves with limited options for compliance.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Indian tax authorities have launched a nationwide crackdown on hundreds of high-net-worth individuals accused of hiding cryptocurrency trades on Binance, the world\u2019s largest crypto exchange. Summary The Central Board of&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/13143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=13143"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/13143\/revisions"}],"predecessor-version":[{"id":13144,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/13143\/revisions\/13144"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1993"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=13143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=13143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=13143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}