Indian Tax Authority Initiates Wide-Ranging Probe into 400 High-Value Binance Traders

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The Indian tax authority has launched a significant investigation into over 400 high-net-worth individuals for suspected cryptocurrency tax evasion. According to a report from The Economic Times, the Central Board of Direct Taxes (CBDT) is examining trades conducted on the Binance platform between the 2022-23 and 2024-25 fiscal years.

In an internal directive, the CBDT has requested regional departments to report their findings by October 17. The probe focuses on evasion of India’s stringent crypto tax regime, which includes a 1% Transaction Tax (TDS) on all transfers and a steep 30% tax on profits, with surcharges that can raise the effective rate to approximately 42.7% for top earners.

This enforcement action comes as Binance has recently re-entered the Indian market. After being banned in late 2023 for non-compliance with anti-money laundering laws, the exchange returned in August 2024 upon paying a $2.25 million penalty and registering with the Financial Intelligence Unit (FIU).