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Hans India
3 days ago
- Business
- Hans India
IndiaTech Dialogues Panel Calls for Urgent Crypto Regulation to Protect Investors and Ensure Accountability
As India's Virtual Digital Asset (VDA) ecosystem reaches a pivotal moment, a panel of legal and digital finance experts convened at the IndiaTech Dialogues – Governance & Safeguards Series, underscoring the urgent need for regulatory clarity and investor protection in the crypto space. Organised by an industry association representing Indian technology startups, unicorns, and investors, the panel discussion titled 'Virtual Digital Assets: Regulations, Responsibility, and the Road Ahead' was held at the India Habitat Centre in New Delhi. Key Panelists & Stakeholders The session brought together an eminent panel of thought leaders: Ms. Rashmi Deshpande, Founder, Fountainhead Legal Mr. Chirayu Bagree, Technology Lawyer and VDA Investor Mr. Sanjay Saxena, Digital Payments & Web3 Expert Mr. Rameesh Kailasam, CEO & President, (Moderator) WazirX Case Sparks Debate The panel delved into the ongoing WazirX case, highlighting how jurisdictional complexities are leaving Indian investors without adequate recourse. Despite WazirX having its principal user base in India, its parent entity, Zettai Pte Ltd, is incorporated in Singapore, resulting in key legal processes, such as moratoriums and restructuring plans, being adjudicated in Singapore courts. This, panelists argued, has sidelined Indian retail investors, who now face significant hurdles in asserting their rights through domestic legal channels. Call for NCLT-led Dissolution Process In light of the situation and the 2024 cyberattack on the WazirX exchange, multiple users and experts advocated for initiating a National Company Law Tribunal (NCLT)-led dissolution process in India. 'The current investor situation exposes serious regulatory and jurisdictional challenges in the crypto sector,' said Mr. Sanjay Saxena. 'An NCLT-led process can establish legally binding remedies that address jurisdictional ambiguities while protecting investors.' Need for Domestic Oversight & Legal Framework Ms. Rashmi Deshpande emphasised the lack of enforceable domestic regulation, particularly when digital assets are moved offshore without investor consent or transparency. 'There's an urgent need for frameworks that mandate solvency norms, data disclosures, and legal remedies within India. Operators must be held accountable under Indian law,' she said. Regulatory Clarity Must Be a Priority Echoing the same sentiment, Mr. Chirayu Bagree pointed out the perils of India's regulatory vacuum. 'We need a crypto-specific regulatory body that's globally recognised and rooted in investor protection. Legal recourse and timely redressal must be prioritised.' Call to Action Mr. Rameesh Kailasam, who moderated the panel, stressed the importance of building investor confidence in an increasingly borderless financial world. 'It is critical to enforce laws that apply in case of disputes, hacks, bankruptcies, and insolvencies. India must step in to safeguard its investors.' About IndiaTech Dialogues IndiaTech Dialogues is a flagship series by aimed at fostering constructive conversations between policymakers, regulators, industry leaders, and academia to shape India's technology and digital policy landscape. As India contemplates its roadmap for digital asset regulation, the voices from this panel make one thing clear: urgent and unified regulatory action is not just necessary, it's inevitable.
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Business Standard
16-06-2025
- Business
- Business Standard
Crypto traders beware: Tax notices are rolling out over undisclosed gains
If you've traded or invested in cryptocurrencies recently and failed to report the income in your Income Tax Return (ITR), you could be on the Income Tax Department's radar. In a recent move, the department has sent emails and alerts to thousands of individuals who failed to declare crypto transactions in their ITRs for the financial years 2022–23 and 2023–24. This outreach is part of the department's 'NUDGE' campaign – a friendly reminder initiative that encourages voluntary compliance. But don't be misled by the gentle tone — non-disclosure of income from cryptocurrencies could lead to scrutiny or penalties under tax evasion laws. The Income Tax Department has sent a communication to thousands of individuals who have undertaken cryptocurrency transactions but failed to reflect this income in their returns, official sources said Friday. These transactions pertain to assessment years 2023-24 and 2024-25, they said. The department and its policy-making body, the Central Board of Direct Taxes (CBDT), suspect tax evasion and money laundering by certain "high-risk" people who are potentially using "unaccounted" income to invest in virtual digital assets (VDAs), commonly known as cryptocurrency. Sources told PTI that the I-T Department has sent e-mails to thousands of defaulting people nudging them to file an updated Income Tax Return (ITR) if any income on account of crypto transactions has not been declared or mis-declared by them. What has triggered the alerts? According to official sources, the Central Board of Direct Taxes (CBDT) suspects that many taxpayers have either misreported or not disclosed income earned through crypto trading. Using data from crypto exchanges (Virtual Digital Asset service providers) and TDS (Tax Deducted at Source) returns, the department found inconsistencies between user declarations and the income reflected in transaction data. 'This is the third phase of the NUDGE campaign after reminders on foreign income and false deduction claims,' a source said, noting that the current focus is on 'high-risk individuals potentially using unaccounted money to invest in virtual digital assets.' The previous two were related to seeking correct declarations on foreign assets and income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC of the I-T Act. What Are the Tax Rules for Crypto? Since April 1, 2022, India's tax laws (under Section 115BBH of the Income Tax Act) clearly state: A flat 30% tax (plus cess and surcharge) is applicable on all gains from transfer of cryptocurrencies. No deductions are allowed except for the cost of acquisition. Losses from crypto trades cannot be set off against any other income or carried forward to future years. Many investors, however, mistakenly treat crypto profits like capital gains and try to reduce tax using indexation or expense claims — which the law explicitly disallows. Set-off of losses from crypto investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources told PTI that data analytics done by the tax department has shown that a "significant" number of people have not filed the Schedule VDA (for crypto) in their ITRs, and such people were offering tax on the income earned at a lower rate or claiming cost indexation. It is understood that the ITRs filed by taxpayers are being verified by the department with tax deducted at source (TDS) returns filed by various cryptocurrency exchanges (Virtual Asset Service Providers), and the defaulters may be selected for further "verification or scrutiny". What should you do now? If you've received a communication from the Income Tax Department, don't ignore it. The department is nudging you to file an updated ITR under Section 139(8A) of the I-T Act. This allows taxpayers to voluntarily correct or update their returns for a limited period — avoiding heavier penalties or scrutiny later. Even if you haven't received an alert but have unreported crypto income, it's wise to update your return now. You can consult a tax expert or use online ITR filing platforms that offer VDA-specific filing tools. With PTI inputs
Time of India
14-06-2025
- Business
- Time of India
CBDT probes ‘evasion' via crypto investments
. Several 'High-Risk Persons' Under Lens For Not Complying With I-T Act Provisions NEW DELHI: The Central Board of Direct Taxes (CBDT) has launched an investigation against several 'high-risk persons' who were allegedly evading taxes and laundering unaccounted funds by investing them in cryptocurrency. These entities and individuals, who were identified for verification and scrutiny, were allegedly involved in Virtual Digital Asset (VDA) transactions and did not comply with the provisions of the Incometax Act, sources said. Three years ago, finance minister Nirmala Sitharaman got parliamentary approval to amend the law to mandate a flat 30% tax, along with the applicable surcharge and cess, on income arising from VDA transfer. The law also bars the deduction of any expenses, except the cost of acquisition. Neither is the set-off of losses on these investments or trading allowed, nor is it permitted to carry forward the losses. The review of VDA returns pertains to 2022-23 and 2023-24. The income tax department's data analysis has shown that a large number of persons violated provisions of the Income Tax Act by not filing the details of VDA in their returns, not paying tax on the income, or claiming cost indexation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo CBDT has already sent emails to thousands of individuals, asking them to review their returns and update the income arising out of VDA transactions, sources said. The move is part of the recent 'nudge' philosophy of the department, hoping that the emails will do the trick and action will be taken against only those who do not respond to the communication or do not correct their returns. While govt is yet to recognise cryptocurrency as an asset class, it decided to impose a flat 30% tax on VDAs, along with 1% tax deducted at source (TDS) on the sale consideration. This drew a lot of adverse comments from the crypto lobby, which stated that exchanges would shut down and trading would move out of the country and operate through illegal means. There has also been lobbying for recognising crypto as an asset, even as govt believes that there needs to be a global push for cross-border regulation. Govt is expected to issue the long-awaited consultation paper soon. . Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
13-06-2025
- Business
- Time of India
Unaccounted income invested in Virtual Digital Assets on CBDT radar
The Central Board Direct Taxes ( CBDT ) is investigating tax evasion and laundering of unaccounted income by high-risk persons through investment in crypto currency. Such entities and individuals which are engaged in Virtual Digital Asset ( VDA ) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification, sources said. As per the Section 115BBH of Income Tax Act, 1961 inserted by the Finance Act, 2022 a flat tax rate of 30 per cent (plus applicable surcharge and cess) on income from VDA transfer is applicable. The provision does not allow deduction of any expenses except cost of acquisition. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo Further, set-off of loss from VDA investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources pointed out that data analytics has shown that a significant number of persons have violated provisions of Income Tax Act by not filing Schedule VDA of ITR and offering tax on the income earned at lower rate or claiming cost indexation. Live Events ITRs filed by taxpayers are being verified with TDS returns filed by the Virtual Asset Service Providers (VASPs) popularly known as crypto exchanges and defaulters may be selected for further verification/scrutiny, they said. It is learnt that CBDT has recently sent emails to thousands of defaulting persons to review their ITR and update if any income on account of VDA transactions have not been properly declared. CBDT has recently embarked on a new approach termed as NUDGE (Non-intrusive Usage of Data to Guide and Enable) Taxpayers, as a part of TRUST Taxpayers FIRST philosophy. This campaign is seen as the third NUDGE campaign launched by CBDT in the last six months. Earlier, NUDGE campaigns were on declaration of foreign assets/income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC.
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Business Standard
13-06-2025
- Business
- Business Standard
Unaccounted income invested in Virtual Digital Assets on CBDT radar
The Central Board Direct Taxes (CBDT) is investigating tax evasion and laundering of unaccounted income by high-risk persons through investment in crypto currency. Such entities and individuals which are engaged in Virtual Digital Asset (VDA) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification, sources said. As per the Section 115BBH of Income Tax Act, 1961 inserted by the Finance Act, 2022 a flat tax rate of 30 per cent (plus applicable surcharge and cess) on income from VDA transfer is applicable. The provision does not allow deduction of any expenses except cost of acquisition. Further, set-off of loss from VDA investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources pointed out that data analytics has shown that a significant number of persons have violated provisions of Income Tax Act by not filing Schedule VDA of ITR and offering tax on the income earned at lower rate or claiming cost indexation. ITRs filed by taxpayers are being verified with TDS returns filed by the Virtual Asset Service Providers (VASPs) popularly known as crypto exchanges and defaulters may be selected for further verification/scrutiny, they said. It is learnt that CBDT has recently sent emails to thousands of defaulting persons to review their ITR and update if any income on account of VDA transactions have not been properly declared. CBDT has recently embarked on a new approach termed as NUDGE (Non-intrusive Usage of Data to Guide and Enable) Taxpayers, as a part of TRUST Taxpayers FIRST philosophy. This campaign is seen as the third NUDGE campaign launched by CBDT in the last six months. Earlier, NUDGE campaigns were on declaration of foreign assets/income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
