Crypto investments under scanner: CBDT launches probe into unaccounted income; high-risk investors in VDA may face scrutiny

The CBDT has initiated a probe into potential tax evasion and money laundering through virtual digital asset investments. Discrepancies between ITR filings and TDS data from crypto exchanges triggered the scrutiny. The tax authority is urging individuals to review and update their ITRs to accurately reflect income from VDA transactions under the “NUDGE” framework.