India Maintains 30% Tax on Cryptocurrency Trade in 2025 Budget, Mandates Reporting of Crypto Transactions Under New Tax Regulations.

Cryptocurrency Taxation Update in 2025 Budget

In the 2025 budget, the Indian government has decided to keep the 30 percent tax on cryptocurrency trading. Additionally, a new section has been introduced in the Income Tax Act of 1961. This section will require individuals and companies to report their transactions involving crypto-assets to the government.

Finance Minister Nirmala Sitharaman announced the inclusion of Section 285BAA in the Income Tax Act. This new rule mandates that all transactions related to virtual digital assets (VDAs) must be disclosed. The government is also expanding the definition of undisclosed income to include income from crypto trading, similar to how gambling and horse racing income are reported. The updated definitions now encompass assets that rely on cryptographic security and blockchain technology.

These changes will come into effect on April 1, 2026, aiming to enhance monitoring and compliance regarding digital asset transactions in India. Under the new regulations, businesses operating in the crypto space will be required to submit detailed transaction reports to the Income Tax Authority in a specific format. If any mistakes are found in the reporting, the businesses will have 30 days to correct them.

However, there are some concerns among experts about the clarity of these new proposals. Specifically, it remains uncertain whether semi-fungible tokens (SFTs) and other types of digital assets will also need to be reported. This move follows the taxation measures introduced in the financial year 2022, which included a 30 percent tax and a 1 percent TDS on crypto transactions.