Explained: CBDT targets unaccounted income invested in crypto

The Central Board of Direct Taxes (CBDT) is investigating tax evasion and the laundering of undeclared money by high-risk individuals who have invested in cryptocurrency or virtual digital assets (VDAs).

Why is the tax body doing this?

The main reason is to curb tax evasion and the laundering of unaccounted funds. Sources told PTI that the CBDT has identified some “high-risk persons” who are putting money in VDAs but have not complied with the Income Tax Act.Data reviewed by the I-T department showed violations such as not filing the mandatory Schedule…