Indian tax authorities just announced they’re going after over 400 wealthy individuals for evading taxes on cryptocurrency profits. Most of them got caught hiding trades on Binance between 2022 and 2025 and never reported their earnings.
The Income Tax department is actively investigating people who stashed crypto on offshore exchanges thinking they could dodge taxes. Many moved their assets overseas, believing the Indian government would never find out about the profits they made. The investigation teams across different cities have been ordered to report their findings by October 17th.
Under India’s crypto tax rules, people are supposed to pay between 33% and 38% tax on profits, sometimes going as high as 42%. That’s on top of the 1% tax deducted at the source on every crypto sale. Not reporting this stuff is a serious problem for traders.
The tricky part is that crypto transactions happen in complicated ways. People buy stablecoins like USDT, move them through blockchain networks, swap for Bitcoin, then swap back. Many investors skip disclosing these holdings when filing their tax returns, which creates a grey area that authorities are now cracking down on.
Here’s the kicker though – Binance registered with India’s Financial Intelligence Unit and is now required to share information with the Indian government. That means all those offshore holdings traders thought were hidden aren’t actually hidden anymore.
Conclusion
Indian tax authorities are targeting 400+ high-net-worth individuals for unreported Binance crypto trades worth billions, with Binance now sharing information after FIU registration.
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