Crypto Tax in India 2025: No Relief in the 30% Tax & New Compliance Rules

Crypto Tax in India 2025: No Relief in the 30% Tax & New Compliance Rules

📢 Indian Budget 2025: What It Means for Crypto Taxes

The Indian Union Budget 2025 is finally out, and many were waiting with bated breath, hoping for possible tax reforms regarding cryptocurrency in India. However, no relief is coming—taxes on crypto remain unchanged.

Despite calls for balanced regulations, investment in blockchain infrastructure, and tax reforms, India’s latest budget has made no mention of crypto-related changes.

❌ No Change in Crypto Tax for 2025

💰 Crypto continues to be taxed at 30% on capital gains
💰 1% TDS (Tax Deducted at Source) on Virtual Digital Assets (VDAs) remains in place
💰 No new incentives or relaxations introduced

📢 India’s 2025 budget contains no updates, indicating that crypto trading and investments will continue to face strict taxation.

📜 Crypto Tax & Reporting Changes in India’s Finance Bill 2025

Although tax rates remain unchanged, the government has proposed new compliance measures to tighten its oversight on cryptocurrencies:

📌 Crypto is now officially recognized as a “virtual digital asset” in tax laws.
📌 Crypto holdings found during tax searches can be treated as hidden income (starting February 2025).
📌 Starting April 2026, businesses must report crypto transactions to tax authorities. A 30-day window will be given to correct any errors.
📌 Crypto assets will be assessed as part of undisclosed income to prevent misuse.

The Indian government believes that crypto falls under the financial sector and requires strict financial scrutiny. This aspect also strengthens their anti-money laundering laws and tax compliance regulations.

🔎 Stronger Oversight: Is Crypto Being Treated as ‘Hidden Income’?

A new finance bill states:

📝 “It is proposed to add the term ‘virtual digital asset’ to the definition of undisclosed income of the block period.”

📢 This means that crypto holdings discovered during tax searches will be treated as unreported income and subjected to further scrutiny.

Additionally, the 12-month time limit for tax investigations will now be applicable to crypto-related assessments.

⚠️ Why the Strict Crypto Tax Policy?

India’s government has been tightening cryptocurrency regulations over the past few years, citing concerns over:

⚠️ Money laundering risks
⚠️ Tax evasion through digital assets
⚠️ Unregulated crypto transactions being used for illegal activities

📢 Crypto trading, safekeeping, and associated financial services have already been under the purview of anti-money laundering laws since 2023.

💡 What’s in the Cards for Crypto Tax in India?

💰 As for crypto traders, there were expectations of some relaxation on taxes. However, the Indian government has clearly maintained its stance on heavy taxation and compliance.

📌 Key Takeaways:

Crypto tax at 30% with 1% TDS on VDAs
No new incentives or relaxations for crypto traders
Crypto transactions to be reported by businesses by April 2026
Crypto holdings discovered during tax searches could be considered hidden income

💬 What’s your take on India’s latest crypto tax policies? Let me know in the comments! 🚀

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