Crypto - Income tax Notice / Assessment Handling

Service Description

Crypto – Income Tax Notice / Assessment Handling

This service provides professional representation and end-to-end support for taxpayers who have received Income Tax notices, scrutiny selections, or assessment proceedings in relation to cryptocurrency and Virtual Digital Asset (VDA) transactions. It is designed for individuals, traders, investors, founders, and professionals whose crypto disclosures have been questioned under automated systems, AIS/TIS analytics, or manual assessments.

The engagement focuses on responding to notices issued under the Income-tax Act, 1961, including Sections 133C, 139(9), 142(1), 143(2), 147/148A, and 156, where crypto income, TDS under Section 194S, foreign assets, or unexplained credits are under examination.

Outcome: Clients receive a legally sustainable, evidence-backed response, reduced litigation exposure, and professional representation through assessment and appellate stages, where required.

Service Offerings

Notice Analysis, Data Reconstruction & Risk Assessment

• Review and classification of notices related to VDA transactions

• Identification of issues: non-reporting, under-reporting, mismatch with AIS/TIS, missing Schedule VDA, unexplained credits, or foreign exchange discrepancies

• Reconstruction of transaction history from exchanges, wallets, and blockchain records

• Reconciliation with Form 26AS, AIS, and bank statements

• Risk profiling and exposure quantification

• Strategy formulation for response and rectification

Deliverable: Legal issue matrix, reconciled transaction statement, and exposure assessment report.

Drafting, Representation & Assessment Support

• Preparation and filing of replies on Income Tax Portal

• Drafting of technical submissions with statutory references

• Preparation of supporting annexures and evidentiary documentation

• Handling online hearings and faceless assessment proceedings

• Representation before Assessing Officer (AO)

• Support in demand rectification, stay applications, and penalty defence

• Assistance in revision, appeal, or ITR-U filing, where applicable

Deliverable: Filed submissions, hearing records, compliance tracker, and closure report.

Key Service Differentiators

• Specialised expertise in VDA taxation, DeFi, NFTs, staking, and offshore wallet structures

• Evidence-backed defence using exchange statements, blockchain verification, and reconciled financial records

• Scrutiny-ready documentation aligned with CBDT guidelines and faceless assessment procedures

• End-to-end case ownership from notice receipt to closure

• Strong focus on litigation risk mitigation and penalty exposure management

Ideal Client Profile

• Taxpayers receiving AIS/TIS mismatch notices relating to crypto transactions

• Individuals and businesses facing scrutiny or reassessment on VDA income

• Clients with past non-reporting, offshore wallets, or complex DeFi structures

• High-value traders, founders, and professionals with multi-platform crypto activity

• Taxpayers seeking structured regularisation and long-term compliance support