Overview
- India’s Central Board of Direct Taxes is leading inquiries into suspected non-reporting of crypto gains by identified Binance users across financial years 2022–23 to 2024–25.
- Investigators are tracking peer‑to‑peer activity settled through domestic bank transfers, Google Pay and previously cash, and are tracing funds into offshore exchange wallets.
- Authorities gained access to relevant exchange data after Binance paid a $2.25 million fine and registered with the Financial Intelligence Unit as a reporting entity in 2024, according to Economic Times reporting.
- The tax regime under review includes a 30% levy on crypto profits and a 1% tax deducted at source, with effective rates for top earners cited above 40%.
- The operation remains in an evidence‑gathering phase that could result in reassessments or penalties, and no final enforcement outcomes have been announced.