India Flags Crypto Risks, Cites Tax Enforcement Challenges
Indian financial authorities have reiterated significant concerns regarding cryptocurrency transactions, emphasizing the challenges they pose to tax enforcement. The Income Tax Department highlighted these risks during a parliamentary committee meeting, pointing to difficulties in tracking taxable income due to the use of offshore exchanges, private wallets, and decentralized finance tools. The anonymous, borderless, and near-instant nature of crypto transfers further complicates oversight by allowing funds to move without regulated intermediaries. Jurisdictional issues with offshore virtual digital asset activities make it nearly impossible to track transactions and identify holders for tax purposes. Despite a 30% tax on crypto profits and a 1% TDS on all transfers, enforcement remains a challenge. While India permits crypto trading under this tax regime and has seen growing adoption, officials maintain a cautious stance, noting that the current framework presents obstacles, such as the non-recognition of transaction losses.
TheNewsCrypto12 мин. назад