New Delhi, July 22 -- With the Income Tax Department relying more on automated and data-driven checks, crypto investors are increasingly receiving tax notices, often for compliance gaps they did not know existed.

Here are different types of crypto tax notices, the consequences of non-compliance and the right way to respond.

Punit Agarwal, Founder and CEO of KoinX, shares that "crypto notices don't follow a single fixed sequence."

A Section 143(1) intimation is issued automatically after an ITR is processed and usually flags a TDS or Schedule VDA mismatch against Form 26AS or AIS.

A Section 139(9) defective return notice, a Section 142(1) inquiry or a Section 133(6) request for wallet and exchange records can each be triggered independ...