The minister, citing figures from the Central Board of Direct Taxes (CBDT), stated that the numbers reflect discrepancies in tax filings tied to Virtual Digital Asset (VDA) trades.
Alongside this revelation, the minister also confirmed that the government has collected 705 crore rupees (more than $80 million) in taxes on crypto gains over the past two financial years.
To address the significant amount of undeclared tax income, Indian authorities have issued over 44,000 notices to individuals and organizations that failed to report crypto-related earnings.
The authorities stated that this enforcement is part of a broader strategy to bring transparency to the digital asset economy and ensure a stronger culture of tax compliance.
Chaudhary further revealed that CBDT has implemented several data analysis tools, including the Non-Filer Monitoring System (NMS) and Project Insight, to improve reporting accuracy.
These systems cross-reference VDA transaction data with taxpayer disclosures, such as Income Tax Returns (ITRs) and TDS returns filed by Virtual Asset Service Providers (VASPs), allowing authorities to spot discrepancies and take appropriate action.
However, some industry leaders argue that the current tax structure may be counterproductive.
