Bitcoin traders may face 60% tax penalty for undisclosed income under the new proposed IT Act Provisions Union Budget 2025 has proposed to introduce VDAs (Including Bitcoin) under Section 158B of the Income Tax Act that reports ‘undisclosed income’, and it’s more than what meets the eye.

This section will give the power to government agencies to conduct block assessment or investigation of undisclosed income of traders, which if found not reported will amount to as high as 60 percent income tax fine for the entire period of the unreported crypto income, as mentioned under 158BA(7) referring to ‘Tax in the case of block assessment of search cases.’