Rs.630 Crore Unreported Crypto Income Found In India: What’s Happening

In the recent development, the Income Tax Department has sent more than 44,000 notices to crypto traders because they have failed to report their trades in Income Tax Returns (ITR). In conjunction, Rs 630 crore of undisclosed crypto assets were discovered as a result of a search and seizure. Such incidents are indicative of an increasing regulatory pressure as the nation attempts to balance regulation and innovation in the emerging digital asset environment.

What Just Happened?

The Income Tax Department has sent more than 44,000 notices to people trading in crypto who have not reported their transactions in their ITR in a major crackdown.

Source: X

This is one of the many steps being undertaken in a larger enforcement initiative to increase control over Virtual Digital Assets (VDAs) like Bitcoin and Ethereum. The traders who had failed to report gains are now requested to respond with the right financial information..

In a related revelation, journalist Sapna Singh tweeted a major update : Indian authorities have unearthed ₹630 crore in undisclosed income through a series of search and seizure operations.

According to the officials, these hidden funds were tracked using suspicious wallet addresses, blockchain activity, and exchange records. These inquiries included digital forensics and raids on people and companies that are suspected of underreporting or hiding profits.

Collectively, these are some of the most important tax enforcement initiatives in India. It's an indication of the government's seriousness in making sure that the tax of 30% and TDS of 1%  on transactions above 10,000 rupees must be followed.

Although Crypto is neither legal nor illegal, authorities are exercising their existing laws to observe their activities and raise revenue. These new developments have been a message to the people that non-reporting of any income will not be ignored.

Source: X

Indian Crypto Market Facing Problems

• Indian traders continue to face challenges amid strict tax rules, a lack of regulation, and global trade pressures.

• The 30% tax on profits and 1% TDS have discouraged daily trading and limited market growth.

• India has not approved ETFs, and confusing crypto policies also affect investor confidence.

• In the meantime, the Ministry of Finance has said that it has no intention of altering the tax regime.

• Trump's tariffs of 50% on India make activities harder and less lucrative for companies and traders trying to find opportunities abroad.

Indian Trade Still Standing with Some Good News

• It is reported that the Indian investors currently have almost 1 million Bitcoins, which is approximately 5.1% of the total supply. Hence, India is the second-largest Bitcoin-holding country after the U.S. A majority of these holdings are by small, retail investors.

• Further, the India COINS Act 2025 seeks to restructure the Indian attitude towards digital assets. The law proposes tax exemptions, the right to custody themselves, and the establishment of a new regulator, CARA. Based on global regulations such as MiCA and the sandbox approach in Singapore, this legislation has the potential to introduce transparency and assurance to the cryptocurrency industry in India.

What This News Will Bring to the Crypto Market

Such trends probably set alarm bells among the traders in India. Some will trade less or move to foreign locations, as if no relief is in sight, and the enforcement is getting tough. Meanwhile, such actions as the proposed India COINS Act 2025 and increasing Bitcoin holdings may stimulate the sentiment in the future.

Nonetheless, until there are well-defined and equitable regulations, the uncertainty will keep on affecting the participation, particularly by institutional investors. In general, the market is at a critical turning point.

Conclusion

The Indian industry is experiencing severe crackdowns as well as optimistic changes. Although the recent enforcement actions reflect an increasing regulatory pressure, initiatives such as the COINS Act 2025 reflect a potential move to balance. With the nation going through this dynamic environment, more concrete policies will play a significant role in defining its digital asset future.