Indian Crypto Tax Amendments in Union Budget 2025 Explained
The post Indian Crypto Tax Amendments in Union Budget 2025 Explained appeared on BitcoinEthereumNews.com.
Indian FM Nirmala Sitharaman defines VDAs as undisclosed income in Union Budget 2025. Section 158B of the Income Tax Act will include Virtual Digital Assets (VDAs) from today. India is one of those countries with stringent laws around cryptocurrencies and their adoption. The government first recognized and imposed taxes on digital assets starting from April 2022. Even after losing considerable trading volume following the tax rules, the Indian government hasn’t lowered hefty taxes on crypto income. During the Union Budget 2025 announcement, Finance Minister Nirmala Sitharaman didn’t declare any significant changes to the crypto tax. She announced several tax amendments keeping the capital gains tax of 30%, no loss set-offs, and 1% TDS on crypto transactions the same. However, with the insertion of Section 285BAA in the Income-tax Act, 1961, entities dealing with cryptocurrencies must report transaction details within a specified period. This is to increase transparency and monitoring of crypto transactions in the country. Another notable announcement is the expansion of VDA definition in the Income Tax Act. The VDAs will be included alongside money, bullion, and jewellery for assessment purposes from Feb 01, 2025, as part of the Section 158B. Major tax relief for income of up to 12 lakhs INR in the Union Budget 2025 has been the highlight. The previous zero-tax policy only applied for an income of up to 7 lakhs INR. While there is no ease of tax policies for crypto investors, the increased slab for zero-tax policy is the major highlight of Budget 2025. Indian Crypto Investors Remain Despair With the Union Budget 2025 India has a thriving crypto investor community and plays a significant role in the broader crypto adoption and investment. However, several reports indicated loss of crypto trading volume in billions after the crypto tax rules in 2022. A report…
Filed under: News - @ February 1, 2025 2:14 pm