6h ago
Think your crypto trades are traceable by the gov?
Think again!
The IT Dept has powerful tools now, and so one missed report or mismatch can trigger notices, penalties, even search & seizure.
Here’s a reality check for you👇
Since July 2022, Section 194S mandates 1% TDS on crypto transfers above thresholds.
Exchanges deduct & deposit at source, so every taxable sale leaves a trace tied to your PAN.
All TDS shows up in your AIS and Form 26AS.
If the income on your return doesn’t match those entries, it’s an automatic red flag. Mismatches = notices.
Indian exchanges follow strict KYC, and many are registered with FIU-IND.
They keep logs of high-value/suspicious trades and must report them, so data gets routed to tax & enforcement teams.
Offshore wallets & foreign exchanges aren’t a safe hideout anymore.
International data-sharing frameworks make overseas trades traceable, so getting to those trades is possible.
FEMA & LRS rules still apply.
Remittances to foreign exchanges must be declared: exceeding limits or misreporting opens the door to FEMA notices in addition to tax scrutiny!
In serious evasion cases, authorities can use search & seizure powers
(e.g., Section 131(1A)) to seize devices, wallets, and records.)
Bottom line: anonymity is shrinking.
Accurate reporting and clean records are your best defence.
Stop guessing, get your crypto tax affairs in order before a mismatch becomes a notice.
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