The Indian Income Tax department is intensifying its scrutiny of crypto traders utilizing Binance, the world’s leading cryptocurrency exchange. The investigation seeks to determine whether these traders are properly deducting 1% TDS on their crypto transactions or failing to comply with tax obligations. The IT department has initiated inquiries into traders’ records, including income tax returns and details of crypto trade sources, and even examined transactions made through Binance, a foreign exchange platform. Traders face potential penalties for non-compliance, as the Indian government taxes only crypto gains, not the entire transaction amount. 1% TDS on cryptocurrency is mandatory when trading on platforms like Binance but not always deducted or properly documented, leading to increased scrutiny and investigation by authorities.