India, June 14 -- The Central Board of Direct Taxes (CBDT) is reportedly investigating alleged tax evasion and laundering of unaccounted funds by high risk persons via investment in cryptocurrency.

A PTI report, citing data analytics, said that some investors have violated the Income Tax Act by not filing the scheduled virtual digital asset (VDA) of income tax return (ITR) "and offering tax on the income earned at a lower rate or claiming cost indexation."

The report further said that the income tax department is verifying and matching the ITR filed by tax payers with the tax deducted at source (TDS) submitted by cryptocurrency exchanges in the country. It further added that the direct tax authority has sent emails to thousands of taxpa...