Income Tax Department Sending Bulk Notices for Crypto Transactions

Income Tax Department Sending Bulk Notices for Crypto Transactions

The Income Tax Department, after tightening scrutiny on political donations & House Rent Allowance (HRA) claims is now issuing bulk Income Tax Intimations for non-disclosure of income from Virtual Digital Assets (VDA).

Received Income Tax Intimation for Crypto Transactions, What can you do?

• These notices are being triggered via a virtual digital asset transaction reflected in the Annual Information Statement (AIS).
• First, check the AIS and the data fed in the Income Tax Return (ITR) filed in relevant Assessment Year.
• Do not worry if all the transactions are correctly reported, the required tax paid and you have all the supporting documentation.
• In case of any pending tax liability, file ITR-U, paying the required Tax along with Interest and Additional Tax.
• Income Tax Department may reopen the assessment in case, the required tax, interest is not paid on time.