I-T Dept Eyes Wider Crypto Reporting Net In FY27 | Profit Exclusive

The Income Tax Department is preparing to significantly tighten surveillance and reporting norms around cryptocurrencies and other Virtual Digital Assets (VDAs) from FY27, NDTV Profit has learnt exclusively from CBDT sources.

According to sources, the Central Board of Direct Taxes (CBDT) is working on a broader tax reporting framework aimed at bringing more crypto-linked transactions and entities under closer scrutiny.

As part of the plan, the tax department is set to roll out three special pilot projects focused on strengthening monitoring, intelligence gathering, and tech-enabled tracking of crypto and VDA transactions.

Sources said the department is examining the possibility of expanding the existing Statement of Financial Transactions (SFT) reporting architecture to include additional categories of crypto and digital asset transactions.

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The proposed move is also expected to widen the reporting net by covering more intermediaries and entities dealing in virtual digital assets, helping authorities improve compliance checks and identify suspicious financial activity linked to crypto trading.

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NDTV Profit has further learnt that the initiative forms part of the CBDT's broader strategy under the Central Action Plan to sharpen tax oversight in the rapidly growing digital asset ecosystem.

The development signals a tougher compliance environment for crypto investors and businesses as authorities step up scrutiny under the evolving Income Tax framework.

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