The Income Tax Department has issued alerts around high-value crypto transactions. The matter came to light earlier this week when KoinX’s Punit Agarwal observed a rise in income tax-related queries tied to crypto transactions from the income tax department. It was also conveyed to the Indian crypto investors that the government is maintaining a strict oversight on all tax-work related to crypto transactions in India.
The Indian government is automating the process of validating and verifying the returns on crypto incomes to avoid any flaws in calculations.
“Income Tax portal matches the transactions appearing in AIS and the data filed by users. In-case the authorities find any discrepancies, then they issue a notification to the user to re-check if they have missed anything or if everything is in-line. For people, if they find any discrepancies in their income reported vs income generated, then they have to file a revised return. Also, they need to give an explanation to the notification. In case everything is in-line and as expected, people can just submit the feedback mentioning they confirm everything is fine,” he said.
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