Indian tax authorities launch tax evasion probe into around 400 high-value Binance traders
Summary
- Indian tax authorities said they are investigating around 400 high-value virtual asset traders who used the Binance exchange on suspicion of tax evasion.
- It said Indian investors face an effective tax rate of about 42.7%, including a 1% withholding tax and a 30% income tax per transaction.
- It said the move is part of a broad crackdown by the Indian government to prevent capital outflows and loss of tax revenue that can occur through overseas exchanges.
Indian tax authorities are reportedly investigating around 400 high-value virtual asset (cryptocurrency) traders who used the Binance exchange on suspicion of tax evasion.
On the 12th (local time), The Block reported that the Central Board of Direct Taxes (CBDT) is investigating whether tax evasion occurred based on virtual asset transaction records during the 2022~2023 and 2024~2025 fiscal years, and has instructed regional offices to report related measures by October 17.
Currently, virtual asset traders in India bear an effective tax rate of about 42.7%, including a 1% withholding tax (TDS) and a 30% income tax per transaction, along with various additional taxes. The move is interpreted as part of a broad crackdown by the Indian government to prevent capital outflows and tax revenue leakage through overseas exchanges.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
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