Indian tax authorities are investigating over 400 Binance traders for tax evasion

According to The Block, India's tax authorities recently launched an investigation into over 400 high-net-worth cryptocurrency investors who allegedly evaded personal income tax by trading on the Binance platform during the 2022-23 and 2024-25 fiscal years.

India's Central Board of Direct Taxes (CBDT) has issued an internal circular directing local tax authorities nationwide to submit progress reports on their investigations and enforcement actions by October 17.

India has strict tax regulations on cryptocurrency transactions. Under current regulations, each cryptocurrency transfer is subject to a 1% withholding tax (TDS), which is included in the final tax bill at the end of the year.

In addition, profits generated from transactions are subject to a 30% capital gains tax, and may be subject to additional taxes and other local levies. Taken together, the total tax burden on cryptocurrency transactions can reach approximately 42.7%, making India one of the countries with the highest cryptocurrency tax burdens globally.