In a major compliance push, the Income Tax Department has sent over 44,000 emails and messages to individuals who didn’t report their crypto investments or trades in their tax returns. This effort is part of the CBDT’s “NUDGE” campaign, which aims to improve transparency and ensure voluntary disclosure of virtual digital asset (VDA) activity.
The Finance Ministry told the Rajya Sabha that 44,057 such communications were sent to taxpayers who skipped reporting their crypto transactions under Schedule VDA in their ITRs for FY 2024–25. Those who received the notice have been asked to update their filings, with a clear warning that ignoring it could lead to scrutiny, penalties, or even legal action.
The Ministry stated that the government has already collected ₹705 crore in VDA taxes for FY23 and FY24. In addition, about ₹630 crore in unreported crypto income has been detected during raids and surveys. Gains from VDAs, including cryptocurrencies and NFTs, are taxed at 30%, along with applicable surcharge and a 4% cess. A 1% tax deducted at source (TDS) is also levied on every trade.
Minister of State for Finance, Pankaj Chaudhary, said the department has already taken legal action in several crypto-related tax evasion cases. He added that the CBDT recently launched the “NUDGE” campaign to raise awareness about disclosing virtual digital assets (VDAs) and paying taxes on them.
As part of the campaign, 44,057 emails and messages were sent to taxpayers who invested or traded in VDAs but failed to report those transactions under Schedule VDA in their income tax returns.
In response to a separate question, the Minister clarified that the Income Tax Act and the Black Money Act do not define the term “black money”. Enforcement under the Black Money Act has picked up pace. By March 31, 2025, the Income Tax Department had completed 1,021 assessments, raising tax and penalty demands of around ₹35,105 crore. So far, 163 prosecution complaints have been filed.
Between July 2015 and March 2025, the department recovered ₹338 crore through tax, penalty, and interest. Back in 2015, when a three-month compliance window was offered, 684 disclosures were made, revealing undisclosed foreign assets worth ₹4,164 crore. That led to ₹2,476 crore being collected in taxes and penalties.
Also Read: ED Raids ₹260 Cr Crypto Scam; Assets Seized Across India
