Crypto Taxman Cometh: Binance Users in India Reel Under Taxman’s Hammer

by

Crypto Taxman Cometh: Binance Users in India Reel Under Taxman’s Hammer

Crypto Taxman Cometh: Binance Users in India Reel Under Taxman’s Hammer

As the great Russian winter sets in, so does the chill of tax notices for Binance users in India. 🥶 It appears that the Income Tax (I-T) department has been busy as a bear in hibernation, investigating whether the 1% Tax Deducted at Source (TDS) on crypto transactions has been properly collected. 🐻

Over the past few weeks, local investors have received notices from the tax office, requiring them to either provide proof of TDS deduction or submit documentary evidence explaining why TDS is not applicable to their transactions. 📝 It’s a bit like asking a bear to explain its honey hoarding habits. 🐻

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Under the 2022 budget provisions, income from cryptocurrencies is taxed at 30%, along with a 1% Tax Deducted at Source (TDS) on transactions. However, many traders have been found neglecting these rules, prompting the department to take action. It’s a bit like trying to herd cats, but the taxman is determined to get his paws on those crypto earnings. 🐈

Officials are using advanced technologies like data analytics and Non-Filer Monitoring Systems to identify tax evaders. Information is being gathered from social media, emails, and other digital platforms to track those who have hidden their crypto earnings or failed to pay the required taxes. It’s a bit like trying to find a needle in a haystack, but the taxman has a few tricks up his sleeve. 🧮

Vikram Subburaj, founder & CEO of Giottus, told ET, “Well, this was bound to happen sooner or later. Overseas exchanges that bypass the TDS requirements are putting Indian traders in a difficult position. If you want to serve investors in India, you should respect and follow the law of the land.” Wise words, Vikram, wise words. 🙏

With the proposed Income Tax Bill 2025, authorities will have greater access to digital records, making it easier to track crypto investments and transactions. The goal is clear: ensure that all crypto traders pay the taxes owed on their earnings. It’s a bit like trying to catch a slippery fish, but the taxman is determined to reel it in. 🎣

Read More

2025-04-01 14:07