India Targets $104M in Undisclosed Crypto Income

The Income Tax Department has already dispatched more than 44,000 notices to individuals concerning their crypto transactions. The newly enacted legislation requires taxpayers to provide granular, transaction-level details for every trade, token swap, transfer, and disposal, moving beyond simple profit or loss reporting. This applies to activity on centralized exchanges, decentralized finance platforms, and multi-wallet usage.

Crypto exchanges, custodians, and wallet service providers are now mandated to report user-specific transaction data directly to tax authorities. This information will be used to automate reconciliation processes against individual tax returns and blockchain records. Tax professionals note that the expanded reporting requirements could present challenges for active traders across multiple platforms, increasing the risk of scrutiny for inaccuracies or incomplete histories.