Income Tax Notice: Be careful because the Income Tax Department is sending ITR Notice to thousands of taxpayers.
Income Tax Notice: According to a report by news agency PTI, the Income Tax Department has recently sent income tax notices to thousands of individuals who failed to report their crypto income in their returns for assessment years 2023-24 and 2024-25.
Why are notices being sent to taxpayers?
The move is part of the department’s non-intrusive use of data to guide and enable (NUDGE) initiative, which aims to encourage voluntary compliance without any pressure. Officials say many taxpayers either did not file the mandatory ‘Schedule VDA’ or misrepresented the nature of profits from virtual digital assets such as cryptocurrencies. Many taxpayers are suspected of using unaccounted money to invest in crypto, raising fears of potential tax evasion and money laundering.
What are the rules (Income Tax Rules)
These notices are meant as a reminder. All income from crypto – whether it is from trading, mining, staking, airdrops or salary paid in crypto – must be disclosed in your income tax return (ITR). Under Section 115BBH of the Income Tax Act, income from VDA is taxed at a rate of 30 per cent, regardless of the holding period. No deductions are allowed except for the cost of acquisition. You cannot offset crypto losses against any other income or carry forward them. Also, 1 per cent tax deduction at source (TDS) under Section 194S is applicable on all crypto transactions.
Tax officials say discrepancies often arise when investors use overseas or unregulated platforms that do not deduct TDS or do not provide proper transaction summaries.
Most Read Articles:
- Reliance Jio introduced new plan: You will get 2GB daily data, unlimited calling under ₹400, check plan details
- July Bank Holidays 2025: Big news for bank customers! Banks will remain closed for 13 days in July, know list here
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
