The Central Board of Direct Taxes (CBDT) is investigating instances of tax evasion and laundering of unaccounted income through cryptocurrency investments by high-risk individuals, income tax department sources stated. Entities and individuals engaged in Virtual Digital Asset (VDA) transactions, who have failed to comply with the provisions of the Income-tax Act, 1961, have been identified for verification, the sources said. It is understood that the CBDT has recently issued emails to thousands of such defaulting taxpayers, urging them to review their income tax returns (ITRs) if any income from VDA transactions has not been properly disclosed.