Over ₹700 Cr Revenue in Two Years from Crypto/VDA Tax, Government Deploys Data Analytics to Tackle Tax Evasion

In a written reply to Unstarred Question No. 13, Minister of State for Finance Pankaj Chaudhary disclosed that the tax collected from VDA income was ₹269.09 crore for FY 2022–23.The Government of India has collected over ₹700 crore in revenue from Virtual Digital Assets(VDAs), including cryptocurrency transactions, over the past two financial years, according to data presented in the Lok Sabha on Monday, July 21, 2025. In a written reply to Unstarred Question No. 13, Minister of State for Finance Pankaj Chaudhary disclosed that the tax collected from VDA income was ₹269.09 crore for FY 2022–23 and rose to ₹437.43 crore in FY 2023–24, amounting to a total of ₹706.52 crore.

The tax regime for VDAs was introduced with effect from FY 2022–23 under Section 115BBH of the Income Tax Act, 1961, which mandates a flat 30% tax on income from the transfer of digital assets such as cryptocurrencies and NFTs. However, data for FY 2024–25 is not yet available as the due date for filing income tax returns has not elapsed.

Responding to whether the government has made any estimates regarding the projected revenue loss due to underreporting or misreporting of VDA income, the Ministry clarified that no such assessments have been carried out so far.

To address tax evasion concerns, the government is actively leveraging advanced data analytics tools. These include the Non-Filer Monitoring System (NMS), Project Insight, and internal databases of the Income Tax Department. These systems allow the tax authorities to correlate third-party information related to VDA transactions with the disclosures made by taxpayers in their Income Tax Returns (ITRs).

Although a centralized system for real-time matching of VDA-related filings with Tax Deducted at Source (TDS) statements filed by Virtual Asset Service Providers (VASPs) is not currently operational, the government is conducting detailed analysis of TDS returns and ITRs to flag discrepancies. As part of its NUDGE (Non-Intrusive use of Data to Guide and Enable) campaign, the Central Board of Direct Taxes (CBDT) has issued alerts to taxpayers where mismatches exceeding ₹1 lakh were detected—particularly where tax was deducted by VASPs but not reported in ITRs.

Furthermore, in a move to enhance compliance monitoring and investigation capabilities, the government has rolled out several capacity-building initiatives. These include training programs, digital forensics workshops, blockchain analysis sessions, and legal framework seminars. Collaborations with institutions such as the National Forensic Science University (NFSU), Goa, are also enabling tax officials to analyze digital evidence and track undeclared crypto transactions effectively.