India Targets Undisclosed Crypto Profits With Heavy Tax Penalties

India is tightening its grip on cryptocurrency taxation, introducing harsh penalties for undisclosed gains.

Under newly proposed amendments, digital assets will be classified alongside other taxable holdings, allowing authorities to impose retrospective assessments on undeclared profits. The policy, part of the Union Budget 2025, mandates that exchanges report transactions and subjects traders to backdated tax liabilities.

The crackdown follows investigations revealing nearly $97 million in unpaid taxes from crypto platforms, with Binance also facing scrutiny. Authorities may now impose penalties as high as 70% on earnings hidden from tax officials for up to four years.

Regulatory pressure has already reshaped the market, with Bybit suspending operations in India while seeking compliance approval. Meanwhile, similar enforcement is emerging globally.

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XRP’s Next Move Could Be Its Biggest Yet

The U.S. IRS will soon require exchanges to disclose crypto transactions, a move that has sparked legal challenges from industry groups opposing expanded surveillance of decentralized platforms.

As governments ramp up oversight, crypto investors may seek alternative trading avenues to navigate increasingly restrictive tax regimes.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.