Crypto Exchanges

Story: India Intensifies Crackdown on Crypto Traders Amid New Tax Rules

By MikeT

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Binance No Longer a Safe Haven for Indian Traders. For years, Indian investors turned to overseas platforms like Binance to manage their crypto…

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How Indian Traders Tried to Hide Profits. Investigations have revealed several tactics that were used to disguise crypto earnings:

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Legal Implications and Penalties. Under the Crypto Tax in India 2025, unreported crypto earnings are treated as undisclosed income…

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Steps for Traders to Ensure Compliance. To align with India’s crypto tax framework, traders should:

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Market Response Amid Crackdown. Despite the regulatory push, the global crypto market shows signs of recovery.

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What This Means for Indian Investors. The Crypto Tax in India 2025 is a strong reminder that digital assets are now under closer…

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The Indian cryptocurrency market is facing heightened scrutiny as authorities target high-net-worth individuals allegedly hiding profits on offshore exchanges.

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According to recent reports, the Income Tax Department has begun investigations into over 400 traders accused of failing to declare cryptocurrency gains spanning from 2022 to 2025.

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For years, Indian investors turned to overseas platforms like Binance to manage their crypto portfolios, often to avoid taxes as high as 42% on profits and 1% TDS on each…

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That era is now coming to an end. Binance, registered with India’s Financial Intelligence Unit (FIU) as a reporting entity, can legally share transaction data with government…

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Chartered Accountant Siddharth Banwat emphasized, “The tax department has full authority to issue summons and verify whether crypto gains have been properly reported.

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Converting Indian rupees to USDT (Tether) and transferring it to Binance, followed by multiple swaps for Bitcoin or Ethereum without converting back to rupees.

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Using the Liberalised Remittance Scheme (LRS) to transfer funds abroad legally, but failing to report the purchases in tax filings.

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These omissions violate Foreign Asset (FA) disclosure rules, classifying such offshore holdings as illegal. Expert Ashish Karundia noted, “The era of crypto anonymity is ending.

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Under the Crypto Tax in India 2025, unreported crypto earnings are treated as undisclosed income under Section 56(2)(x) of the Income Tax Act.

The Currency Analytics

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