Налоговые риски криптовалют в Индии: AML и защита

With the introduction of a 30% tax on income from Virtual Digital Assets (VDA) and increased oversight by the Financial Intelligence Unit – India (FIU-IND), proactive AML screening has become a key element of financial security.

This article serves as a practical guide for Indian traders, investors, and freelancers. You will learn how to implement a transaction verification process for custodial exchanges, non-custodial wallets, and DeFi interactions to prove the legitimate origin of funds and minimize tax and regulatory risks.

List of Abbreviations

VDA: Virtual Digital Assets
FIU-IND: Financial Intelligence Unit – India
AML: Anti-Money Laundering
ITD: Income Tax Department of India
TxID: Transaction Hash
OFAC: U.S. Office of Foreign Assets Control

Quick Action Plan

Select an AML service: Ensure it allows exporting reports to PDF, supports manual analysis, and has an API for automation.
Check all incoming transactions before receiving them: Request the sender's address for preliminary analysis.
Make decisions based on the report: Reject funds with high risk (sanctions, darknet, mixers).
Document and store evidence: Save PDF reports, transaction metadata, and maintain a screening log. Keep the archive for at least 10 years.

Tax Risks and Regulatory Oversight in India

The Income Tax Department of India (ITD) directly links the "purity" of crypto assets to the correctness of tax payments. Receiving funds from addresses involved in illegal activities can become grounds for an audit of your income and challenge the payment of the 30% tax on VDA established by Section 115BBH of the Finance Act, 2022.

AML screening serves as proof of your due diligence. Furthermore, the registration of dozens of VDA service providers with the FIU-IND obliges them to monitor and report suspicious transactions. This increases the risk of asset freezing when attempting to deposit funds from high-risk addresses onto an exchange.

Choosing an AML Service and Interpreting Reports

Provider Selection Criteria

Methodology Transparency: Understanding how the service calculates the risk score.
Manual Analytics Capability: Tools for independent investigation of address connections.
Report Exporting: Ability to download a PDF report with metadata (time of check, hash).
API Access: Essential for automating checks if you handle high volumes.

Provider Categories

Blockchain Analysis Providers: Specialized tools (e.g., Chainalysis, Crystal Blockchain).
Integrated Platforms: Services offering AML as part of a comprehensive solution (e.g., GetBlock, Sumsub).
Open Source/Consumer Tools: Solutions for technically savvy users or individual investors (e.g., AML Check).

Interpreting the Risk Score

<10% (Low Risk): The transaction is considered safe. Sources include verified exchanges and private wallets with no suspicious connections.
10–70% (Medium Risk): Requires additional analysis. There may be indirect ties to high-risk services (casinos, mixers). Decide based on the transaction context.
>70% (High Risk): Direct ties to sanctioned addresses, darknet markets, mixers, or fraudulent schemes. Such transactions should be rejected immediately.

Legal Status of AML Reports

An AML report by itself is not forensic evidence, but it serves as strong confirmation of your good faith. To strengthen its evidentiary value, especially for large or controversial transactions, it is recommended to use:

Notarization: A notary can certify the fact and time the check was conducted.
Audit Opinion: An independent auditor or lawyer can prepare an opinion confirming your screening procedure.
Digital Signatures and Timestamping: Using these technologies proves that the report has not been altered since its creation.

Practical Scenarios and Procedures

1. Receiving funds to a non-custodial wallet (P2P, Freelance)

Request Address: Ask the sender for the address from which the funds will be sent.
Preliminary Check: Analyze the sender's address before the transaction occurs.
Decision Making: Accept or reject the transfer based on the risk score. In case of high risk, request sending from a different, "clean" address.
Documentation: After receiving funds, save the PDF report and transaction metadata.

2. Depositing funds to a custodial exchange

Before topping up your exchange account, check your own wallet from which the transfer is planned. If it has ties to high-risk sources, the exchange may freeze the deposit and demand explanations.

3. Interacting with DeFi protocols

Check not only the counterparty address but also the smart contract address itself. Ensure it is not on sanction lists (like Tornado Cash) and has passed security audits by reputable firms (CertiK, OpenZeppelin).

Storing Evidence: Structure and Terms

Retention Period

Store all reports and transaction data for at least 10 years. Section 149 of the Income Tax Act, 1961 allows tax authorities to reassess income for this period. More stringent requirements may apply to corporate clients.

Archive Structure

Folder Structure: YYYY/Asset/ (e.g., 2024/USDT/).
File Naming: Use a standardized ASCII/UTF-8 format:
YYYY-MM-DD_Amount_Asset_Description.pdf

Example: 2024-10-28_5000_USDT_from_partner_A.pdf

Metadata Template (JSON)

Along with the PDF report, store a metadata file for each transaction to ensure data is machine-readable for future audits.

{
  "txID": "0x123abc...",
  "amount": "5000.00",
  "asset": "USDT",
  "network": "TRC-20",
  "timestampUTC": "2024-10-28T15:30:00Z",
  "counterpartyAddress": "0x456def...",
  "reportURL": "https://aml-provider.com/report/xyz",
  "reportHashSHA256": "a1b2c3...",
  "checker": "Name of the person checking or system name",
  "riskScorePercent": 5,
  "riskCategories": ["Exchange"]
}

Privacy and Data Security

When storing evidence, maintain a balance between completeness and security:

Encryption: Store the archive in an encrypted form (cloud storage with End-to-End Encryption or a local encrypted drive).
Data Minimization: Store only necessary transaction data. Avoid storing excessive personal data of counterparties.
Access Control: Maintain an archive access log to record who viewed the information and when.

Conclusion

In the current Indian regulatory environment, proactive AML screening is not just a recommendation, but a mandatory element of risk management. Systematic transaction verification, documentation of results, and long-term storage form a reliable evidentiary base for protection against asset freezing and tax claims. Establish a screening process and start keeping a log with current operations — it is an investment in your financial security.

Useful Resources and Sources

Finance Act, 2022 (Section 115BBH): Official document on VDA taxation.
Income Tax Act, 1961 (Section 149): Provisions on income reassessment periods.
Official FIU-IND Website:
https://fiuindia.gov.in/ — Guidelines and regulations.

Tax Risks of Crypto in India — AML and Protection