The Indian government is indeed taking a tough stance on tax evasion related to cryptocurrency trades.
Over 400 high-net-worth individuals are being scrutinized for allegedly hiding their crypto profits on Binance, with the tax authorities seeking to recover evaded taxes, penalties, and interest.
Key Points:
Tax Evasion Amount: The tax evasion probe revealed nearly $97 million in unpaid goods and services tax (GST), with approximately $14 million recovered through penalties, interest, and settlements.
Binance’s Tax Liability: Binance faces an $86 million tax bill, while WazirX settled its $4.8 million GST liability with an additional 20% penalty.
Investigation: The Central Board of Direct Taxes (CBDT) has directed investigation wings to report actions by October 17, 2024.
Why Tax Authorities Are Confident: Binance’s registration with India’s Financial Intelligence Unit (FIU) has enabled the sharing of transaction data, helping tax authorities identify mismatches and unreported income.
Potential Consequences: Taxpayers who fail to report virtual digital assets accurately may face reassessment, scrutiny, penalties, or even prosecution under the Black Money Act .
Team- Intellex Strategic Consulting Private Limited
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