India's Tax Department Flags Crypto and Stablecoins as Enforcement and Stability Risks

India's Income Tax Department recently told a parliamentary finance committee that crypto use, especially via offshore exchanges, private wallets, and DeFi, is making income detection and tax enforcement harder. Officials warned that anonymous, borderless transfers can bypass regulated intermediaries, even as India maintains a 30% tax on digital asset profits and a 1% tax deducted at source on every transfer. The Reserve Bank of India, in its latest Financial Stability Report, also argued that fast-growing private stablecoins could threaten financial stability and reiterated its preference for central bank digital currencies.