India’s Income Tax department aligns with RBI on crypto risks
08 Jan 2026, 03:36 PMTax officials highlighted several challenges in regulating these digital assets during discussions with the parliamentary standing committee on finance.
Team Head&Tale
Share the story on
The income tax department has raised serious concerns about the risks posed by virtual digital assets, including cryptocurrency, echoing the Reserve Bank of India's stance against allowing these instruments in the country.
Tax officials highlighted several challenges in regulating these digital assets during discussions with the parliamentary standing committee on finance on Wednesday, The Times of India reported citing an unidentified person.
The department pointed out how the anonymous nature of crypto transactions, combined with their borderless structure and rapid transfer capabilities, enables fund movements outside the purview of regulated financial institutions.
The Delhi-based tax authority emphasized that the complexity increases manifold due to offshore exchanges, private wallets, and decentralised platforms, which make it extremely challenging to identify taxable income.
India belongs to a group of nations maintaining a cautious approach toward cryptocurrency and stablecoins despite significant pressure from industry players and some foreign governments.
The RBI has repeatedly expressed apprehension about these digital assets, warning that the absence of underlying tangible assets makes them highly speculative investments.
Just last month, a Deputy Governor of the RBI, T. Rabi Sankar, warned that stablecoins pose significant macroeconomic and systemic risks, saying they could undermine monetary policy and financial stability.
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
Related News
