Indian tax officials are looking into more than 400 wealthy traders who use Binance, believing they may be avoiding paying a lot of taxes on cryptocurrency, according to a report from The Economic Times.
Main Points:
- India’s tax department is looking into more than 400 Binance traders for possibly avoiding the country’s high taxes on cryptocurrencies.
- The investigation looks at activities from 2022 to 2025 and examines trades made directly between people.
- Binance was banned but got back after paying a fine. Now, they are dealing with stricter rules.
The investigation, led by the Central Board of Direct Taxes (CBDT), looks at activities from 2022-23 to 2024-25. It asks regional offices to send their results by October 17.
India’s tax on cryptocurrency for high earners is now 42. 7%, and authorities are looking into cases of tax evasion
The traders being watched supposedly didn’t pay India’s high crypto taxes, which include a 1% tax on each trade and a 30% tax on profits.
When you add extra charges and a 4% fee, the total tax rate for people who earn a lot can go up to 42. 7%
The government is still strict about digital money. Union Minister Piyush Goyal recently confirmed that India wants to grow its central bank digital currency (CBDC) while still taxing private cryptocurrencies a lot.
In late 2023, Binance and eight other foreign exchanges were banned from working in India because the Financial Intelligence Unit (FIU) said they broke money laundering laws.
The company paid a fine of $2. 25 million and went back to doing business in India in August 2024 after signing up as a “reporting entity. ” This allowed officials to get information for an ongoing tax investigation.
Investigators are also checking on P2P transactions done through Binance, which were paid for using local bank accounts, Google Pay, or cash, according to the report.
Although cash payments are no longer allowed, officials think these methods might have been used to hide income that should be taxed.
The investigation is another problem for Binance, which is already dealing with issues from lost tokens and system failures in other areas.
The exchange recently promised to pay back traders who were affected, while the overall crypto industry is dealing with many sell-offs and more attention from governments around the world.
14 People Sentenced to Life in India for Kidnapping a Cryptocurrency Investor
In August, an Indian court that deals with corruption punished 14 men, including 11 police officers (some currently working and some retired) and a former lawmaker named Nalin Kotadiya, by sending them to prison for life. They were found guilty of kidnapping and extorting a businessman named Shailesh Bhatt because of his cryptocurrency investments in 2018.
A special court in Ahmedabad found the group guilty of kidnapping, plotting together, and corruption-related crimes.
The incident happened in February 2018 when Bhatt was taken by gunpoint by men pretending to be CBI officers. They brought him to a farmhouse close to Gandhinagar.
He had to give up 34 Bitcoin, which was about $150,000 back then. The kidnappers asked for 176 BTC and 32 crore rupees (which is $3. 6 million)However, their second attempt to get the money didn’t work because the person delivering it became suspicious.
In the same month, India’s Enforcement Directorate (ED) searched 11 places in different cities, including Delhi, because of a worldwide cryptocurrency scam. The action came after the CBI and Delhi Police filed reports.
Officials say the suspects pretended to be police or tech support to trick people in India and other countries into giving them money.
