Crypto Tax Shock in India: Mass Notices Sent to Digital Asset Traders

India’s crypto crackdown continues to intensify as tax authorities issue notices to thousands of traders who failed to declare digital asset income for FY 2022–23 and 2023–24. With a 30% capital gains tax, no loss offset, and a 1% TDS on transactions, India is taking a firm stance on crypto taxation.

CoinDCX co-founder Sumit Gupta has advised all users to report crypto-related earnings — including airdrops and foreign exchange trades — to remain compliant.

Meanwhile, cybercrime has fueled caution. The Central Bureau of Investigation (CBI) recently arrested Rahul Arora for crypto scams worth $327,000 and cracked down on the $800 million GainBitcoin fraud case.

As exchanges like OKX exit India, local platforms are urging the government to lower TDS to 0.01% and allow losses to be offset.

While India hasn’t banned crypto, its cautious approach and safety-first policy mean a crypto-friendly environment is still a work in progress.