Income Tax department has sent bulk emails to numerous taxpayers who either haven't paid the correct income tax on their cryptocurrency dealings or have failed to report their cryptocurrency transactions in Schedule VDA (virtual digital assets) of the Income Tax Return (ITR).

Income Tax department has sent bulk emails to numerous taxpayers who either haven't paid the correct income tax on their cryptocurrency dealings or have failed to report their cryptocurrency transactions in Schedule VDA (virtual digital assets) of the Income Tax Return (ITR). Keep in mind that if you are using foreign crypto exchanges like Binance or others, then you need to file Schedule FA in addition to the VDA schedule in the ITR.

Overlooking any of these requirements, could get you into trouble with the tax authorities. It's true that in the past similar bulk emails and notifications were sent out regarding unreported incomes, but this time things are different. The income tax department now has access to information and data about undisclosed crypto income even if the crypto transactions did not go through any Indian exchanges.

Direct and advance tax collections for FY 2025-26 reached ₹5,45,207.15 crore, showing a 4.86% increase compared to the corresponding period in FY 2024-25. Corporate tax collections rose by 9.47% to ₹2,49,672.09 crore, and securities transaction tax (STT) grew by 12.12% to ₹13,013.04 crore. However, refunds surged by 58.04%, amounting to ₹86,385.31 crore, reflecting improved taxpayer services and faster issuance of refunds. Consequently, net direct tax collections slightly declined by 1.39% to ₹4,58,821.84 crore

Income tax department is taking action against non-compliant people having foreign income, as many as 5,483 taxpayers have filed belated returns reporting foreign assets worth Rs 29,208 crore. The finance ministry's statement comes amid reports that money deposited in bank accounts of Indian entities in Switzerland has increased in 2024.