India Crypto Investors Face IT Notice for Unreported Gains

Crypto investors in India may face an Income Tax notice if their tax filing shows no cryptocurrency income, but exchanges have reported TDS under Section 194S.

'The department already has the transaction on record before you file anything,' Agarwal said. 'Your ITR not reflecting it is what draws attention, not the transaction itself.'

Investors who discover they omitted crypto income from their tax return should establish the correct amount of income by collecting transaction histories from exchanges and calculating gains under Section 115BBH.

'Simply paying the tax does not resolve an omission in the ITR,' Agarwal said. 'The return itself has to show the income.'