Overview

• The CBDT directed income tax investigation units across cities to act on suspected non-disclosure tied to trades from FY 2022-23 to 2024-25.
• Scrutiny centers on Binance peer-to-peer deals that paired Indian buyers and sellers with settlements through domestic bank transfers, Google Pay, or earlier in cash.
• Officials are tracing funds across offshore wallets, LRS-funded accounts, and informal channels such as hawala to map unreported holdings.
• Taxpayers face summons, reassessment, and penalties under Section 270A, with possible Black Money Act exposure for omitted foreign assets.
• Advisers urge affected individuals to reconcile activity and consider filing updated returns, with crypto profits subject to a 1% TDS on each sale and effective rates that can reach about 42%.