Key facts
- Fewer than 25% of Indian crypto traders reported transactions for the 2023 tax year.
- Challenges exist in tracking offshore exchanges and private wallets.
- India ranks first in global crypto adoption.
- A large portion of crypto transactions by Indian users may be going undeclared.
A report indicates a significant gap between cryptocurrency trading activity and tax compliance in India for the 2023 tax year. Fewer than a quarter of Indian crypto traders reportedly declared their transactions. This low rate of reporting highlights substantial challenges faced by authorities in tracking cryptocurrency activities, particularly those involving offshore exchanges and private wallets. Despite these compliance issues, India ranks first globally in terms of cryptocurrency adoption. The report's findings suggest that a large portion of crypto transactions by Indian users may be going undeclared, posing difficulties for tax collection and regulatory oversight.