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Crypto Tax Collections Surge to Rs 437 Crore as Real-Time Monitoring Remains Elusive

Authorities now depend on post-filing analytics via Project Insight to uncover unreported gains in a market that lacks real-time tracking.

India’s crypto tax collection surges 62.5% YoY to ₹269 Cr in FY23. Reuters
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Overview

  • The government collected Rs 437.43 crore in taxes on virtual digital asset gains during FY 2023-24, marking a 63% increase over the previous year.
  • No real-time system exists to match transaction data from virtual asset service providers with income tax returns, so authorities rely on post-filing tools such as the Non-Filer Monitoring System and Project Insight.
  • CBDT’s NUDGE campaign has issued communications prompting taxpayers to amend returns when discrepancies in crypto reporting exceed Rs 1 lakh.
  • Think-tank analysis shows Indians traded over Rs 2.63 lakh crore on offshore crypto platforms from December 2023 to October 2024, suggesting more than Rs 6,000 crore in uncollected TDS.
  • Crypto assets remain unregulated under Indian law, prompting specialized training in digital forensics and blockchain analysis for tax officials to strengthen enforcement.