India issued 44,000+ crypto tax notices and flagged Rs 888 crore unreported VDA income. New 2025 act requires transaction-level reports from exchanges and DeFi.
Alpha Score of 30 reflects poor overall profile with poor value, weak quality, moderate sentiment. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
India’s Income Tax Department found Rs 888 crore ($104 million) of unreported virtual digital asset income and has issued more than 44,000 notices in the current filing season, according to The Economic Times. The enforcement push coincides with the new Income Tax Act 2025, which took effect April 1 and replaced the 1961 version.
The 30% flat tax on crypto profits and the 1% tax deducted at source (TDS) remain unchanged. What has changed is the disclosure burden. Investors must now report transaction-level details for every trade, swap, transfer, and disposal event under Schedule VDA. Exchanges, custodians, and wallet providers are required to submit per-user transaction data directly to tax authorities. The data will be cross-referenced with individual returns and blockchain records, tax professionals told the paper.
The risk is concentrated among traders who move coins across multiple centralized exchanges, DeFi platforms, and self-custody wallets. Missed records, incomplete wallet histories, or discrepancies between exchange submissions and personal returns will trigger automated reconciliation flags. “Inaccuracies are more likely to catch the eye of authorities running data verification checks,” a tax professional said.
For Coinbase, which recently re-entered India, the tightened regime adds compliance costs on top of regulatory uncertainty. The exchange’s Alpha Score sits at 31, reflecting the operational burden its India business could face. Broader crypto market analysis suggests the crackdown may push some retail participation toward peer-to-peer or offshore platforms, though increased enforcement makes those channels riskier.
The April 30 filing deadline will test how smoothly the new reconciliation system works, and how many traders get caught out by the mismatch between their own records and exchange data, tax advisors said.
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