India Collects ₹437 Crore in Crypto Taxes Using AI

India's Income Tax Department has leveraged artificial intelligence and data analytics to enhance tax compliance in the cryptocurrency sector. A total of ₹437 crore was collected in crypto-related taxes during the 2022-2023 fiscal year, according to a government report to Parliament.

Ravi Agrawal, Chairman of the Central Board of Direct Taxes, confirmed the use of machine learning and digital forensics to identify suspicious transactions. The system cross-references TDS data from crypto exchanges with taxpayer filings, significantly improving detection capabilities.

The government has implemented the Crypto-Asset Reporting Framework (CARF) to automate tax information sharing. "This aligns India's approach with global standards for cryptocurrency taxation," noted Saravanan Pandian, CEO of KoinBX, emphasizing international coordination in digital asset regulation.