The Indian Income Tax Department issues a cryptocurrency risk warning, making tax revenue tracking and tax enforcement more difficult.

Techub News reports, according to Cointelegraph, the Indian Income Tax Department (ITD) warned at a meeting of the Standing Committee on Finance in Parliament that offshore exchanges, private wallets, and DeFi tools make tracking taxable income from crypto assets and tax enforcement more difficult. The ITD pointed out that crypto transfers are characterized by being "anonymous, borderless, and near-instantaneous," making it "almost impossible" to track transactions and identify holders for taxation purposes when multiple jurisdictions are involved. India imposes a flat 30% tax rate on crypto profits and a 1% TDS on transfers, but the government's overall stance remains cautious.