Indian tax officials "urge" Crypto Assets investors to declare in their income tax returns.

According to Gate News bot, PTI reported that last week, official sources stated that the Income Tax Department (ITD) has issued notices to thousands of individuals who have conducted Crypto Assets transactions but did not reflect this income on their tax returns.

They stated that these transactions involve the assessment years 2023-24 and 2024-25.

The department and its decision-making body, the Central Board of Direct Taxes (CBDT), suspect certain “high-risk” individuals of tax evasion and money laundering, who may use “unaccounted” income to invest in virtual digital assets (VDA), commonly known as Crypto Assets.

Sources told PTI that the IT department has sent emails to thousands of tax defaulters, urging them to submit updated income tax returns ( ITR ) if they have not declared or have incorrectly declared income from encryption transactions.

This communication is part of the NUDGE (Non-Intrusive Use of Data to Guide and Support) initiative carried out by the department under the concept of “Trusting Taxpayers First.”