IndiaCryptoTax

The Indian cryptocurrency policy is currently in “regulatory limbo” and to remedy this, the country needs to implement a “rights-first” framework that gives residents “constitutional-level” rights to self-custody assets.
India’s Crypto Regulatory Impasse
#IndiaCryptoTax
India’s crypto policy remains in “regulatory limbo,” with policymakers largely relying on existing statutes since the Supreme Court lifted a central bank-imposed banking ban in 2020. According to Arvind Alexander, a senior legal counsel at the Web3 venture capital firm Hashed Emergent, this situation unfortunately “creates confusion” and inhibits the goal to make India a global crypto leader.”
To remedy this, India needs to enact a rights-first framework that grants residents “constitutional-level” rights to self-custody assets and “to transact peer-to-peer without blanket KYC [know your customer].” Alexander also called for the establishment of a dedicated crypto regulator and the creation of innovation safe harbors and sandbox structures.
According to Alexander, taking these steps will bring clarity and attract talent to India.
“Taking these steps would transform India from a jurisdiction of scattered advisories and unpredictable enforcement into one of the world’s most balanced, competitive crypto ecosystems — attracting talent, capital and global projects to build natively in India,” Alexander stated.
Nevertheless, some reports in India have suggested that the government is close to unveiling a discussion paper on virtual assets. Some observers believe this puts the Asian country on a path toward the regulatory clarity the crypto industry has been clamoring for. While he applauds the release of the virtual digital assets (VDA) discussion paper as a step in the right direction, Alexander believes it can only be meaningful if it goes beyond asking questions.
“We believe the VDA discussion paper has the potential to kick-start a robust, multi-stakeholder roadmap, but only if it moves swiftly from broad questions to rights-informed policy prescriptions,” he said.
Introducing the COINS Act 2025
The discussion paper’s clear path to legislation is what will prevent it from becoming another talking document. To ensure the VDA paper does not end up like that, Alexander said it must be paired with a model law or draft crafted by industry participants. On July 21, Hashed Emergent unveiled just that draft: the Crypto-Systems Oversight, Innovation, and Strategy (COINS) Act 2025.
Vishal Achanta, another legal counsel at Hashed Emergent, said this model law was drafted after research studies conducted by the Web3 venture capital firm revealed two things about India’s crypto landscape. Firstly, builders and users lacked clear property and privacy rights while service providers juggled conflicting advisories issued by regulators. Secondly, India’s punitive taxes or ad-hoc bank freezes were driving founders and capital offshore.
Remarking on the COINS Act’s long-term objective, Achanta said:
COINS Act aims to deliver legal certainty, consumer protection and innovation acceleration, transforming India into a global hub for rights-grounded, decentralized finance rather than an afterthought in foreign jurisdictions.
Under Hashed Emergent’s model law, crypto users’ right to hold, transfer and self-custody crypto-assets without mandatory use of intermediaries is guaranteed. Similarly, the model law extends the right to privacy to the crypto realm, which ensures “lawful anonymous transfers remain protected.” For developers, the model law envisions an environment in which they have an “explicit right to build, test and deploy code on public networks.”
The COINS Act, meanwhile, touches on the creation of a strategic Bitcoin reserve, which, according to Achanta, can help India reduce its reliance on traditional fiat and bond holdings. While the model law proposes building the strategic reserve with forfeited bitcoin ( BTC), Alexander, however, argues that such “seizure volumes alone may not suffice to build a meaningful reserve at scale.”
To address this challenge, the COINS Act proposes an approach that seeks to balance building up reserves and maintaining market stability.
“The Act adopts a measured, budget-neutral purchase framework that complements asset consolidation with prudent market acquisitions, delivering diversification benefits without jeopardizing fiscal discipline or market stability,” Alexander explained.

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India’s crypto tax haul jumped to ₹437.43 crore in FY 2023‑24—up 62.5% from the ₹269.09 crore collected a year earlier (Moneycontrol, The Indian Express). This marks the first time New Delhi has publicly broken out crypto tax figures since the 30% flat tax on virtual digital asset (VDA) gains and 1% TDS on transactions over ₹10,000 took effect in 2022 (Moneycontrol).

To clamp down on undeclared trades, the government is deploying advanced data‐analytics tools—NMS, Project Insight, and internal IT Department databases—to pinpoint mismatches between blockchain activity and tax filings. Under the NUDGE initiative, taxpayers who haven’t reported VDAs (despite TDS deductions) receive automated prompts to amend their returns when discrepancies exceed ₹1 lakh (Moneycontrol).

The uptick in revenue and ramped‑up enforcement signal that Indian authorities are serious about closing tax gaps in rapidly evolving crypto markets. Investors should brace for continued scrutiny—and ensure all digital‑asset gains are accurately declared to avoid notices or penalties.

Source: Moneycontrol, “Govt collected Rs 437.43 cr in income tax on cryptocurrencies in FY24, up by 62% YoY”
Credit: Debangana Ghosh
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An open message to the Indian Government & policy-makers.

India — the land of UPI, the brain behind the world’s biggest IT companies…
But still struggling to accept crypto?

While the world is building Web3, we are busy taxing it out of existence.
Let me break it down — not as a critic, but as a concerned Indian builder.

💥 1. Crypto = Job Engine, Not a Threat

India has over 230+ Web3 startups — building real products, hiring talent, and solving future financial problems.

But you know what’s scary?

> 80% of these founders are shifting to Dubai, Singapore & the US.
Why? Because India gives them taxes, not support.

In contrast, countries like UAE are creating free zones for Web3, offering clarity, low taxes, and grants.

💸 2. Crypto = Revenue Source, Not Black Money

Right now, India is treating crypto like gambling —
🟥 30% flat tax (without loss set-off)
🟥 1% TDS on every trade (killing volume)

But let’s be honest — this isn’t stopping people. It’s just pushing them underground.

People are moving to:
✔️ Offshore exchanges
✔️ VPN-based DEXs
✔️ Peer-to-peer networks

> The result? No tracking. No tax. No control.

Imagine if the government created clarity, not fear — India could earn billions from:
✅ Income tax
✅ Corporate tax from Web3 startups
✅ GST from digital services

⚠️ 3. Current Tax Regime Is Destroying Growth

Let’s compare:

Investment Type Tax on Profit Loss Set-Off TDS

Stocks 10-15% ✅ Allowed ❌ No
Crypto 30% ❌ Not allowed ✅ 1% on every trade

This is not innovation-friendly.
This is innovation-killing.

What should change?
🔸 Lower tax slab (10–15%)
🔸 Remove 1% TDS (or make it annual)
🔸 Allow loss carry-forward like in equities

🧠 4. Crypto Isn’t a Bubble — It’s the New Internet

The same thing happened in the early 2000s.
People said: “Internet is a scam.”
But those who built then… rule the world now.

> Crypto is not just a currency — it's a technology layer — for identity, ownership, payments, governance, gaming, art, voting, and more.

India has the devs.
India has the brains.
India has the market.

All it needs is a push, not punishment.

🗣️ 5. Message to the Indian Government

This is not a protest.
This is a plea for progress.

🇮🇳 India deserves to lead this revolution.
Not watch it from the sidelines.

We urge you to:
✅ Reduce tax to enable innovation
✅ Remove 1% TDS to stop black-routing
✅ Create clear guidelines for Web3 startups
✅ Empower builders, not block them

🛡️ Conclusion: Crypto is India’s Future, Not Its Enemy

The next generation is already building in crypto.
We just need our government to see the opportunity — not the fear.

Let’s not turn away talent.
Let’s not lose billions to foreign economies.
Let’s make India the Web3 Capital of the World.

If you agree with this vision — drop a 🚀 in the comments and tag someone who needs to read this.
Let’s start this conversation — before it’s too late
#IndiaCrypto #IndianCryptoTrends #indian #IndiaCryptoTax

✅ Follow @VIKAS JANGRA for honest crypto insights & future-driven conversations.

🚨 Unreported Bitcoin? The Taxman Is Watching! CBDT Launches Nationwide Crypto Probe 🕵️‍♂️

India’s Income Tax Department (CBDT) has launched a major investigation into people and companies hiding their crypto earnings. According to officials, many traders failed to properly report their income from digital assets like Bitcoin $BTC and other cryptocurrencies. Now, the CBDT is connecting the dots using tax filings and data from crypto exchanges to catch those breaking the rules. Under Indian law, profits from crypto must be taxed at 30%, and you can’t claim extra deductions.
CBDT (Central Board of Direct Taxes) is a statutory body established as per the Central Board of Revenue Act, 1963. It is India's official financial action task force unit. It is administered by the Department of Revenue under the Ministry of Finance.
The investigation found a huge number of taxpayers skipping the crypto section (called “Schedule VDA”) in their income tax returns or paying less tax by incorrectly claiming benefits. As a result, the CBDT has flagged thousands of “high-risk” individuals and sent them warnings, urging them to fix their filings ASAP. If they don’t, more scrutiny and legal trouble may follow 👨‍⚖️. Crypto exchanges have also handed over TDS (tax deducted at source) data, helping authorities identify mismatches.
This crackdown is part of a bigger campaign to encourage voluntary tax compliance under CBDT’s “Trust Taxpayers First” approach. Meanwhile, the RBI has reiterated concerns about the financial risks posed by crypto, as India considers stronger digital asset regulations. So if you’ve made money through crypto and haven’t reported it properly—now’s the time to come clean! 💰⚠️
#India #IndianCryptoCommunity #IndiaCryptoTax

India's cryptocurrency industry is intensifying efforts to convince policymakers to overhaul the nation's harsh crypto tax regime. At the center of the push is the demand to roll back the 30% capital gains tax and 1% transaction levy introduced in 2022 — rules that reportedly drove over 90% of Indian crypto trading offshore, according to research by the Esya Centre.
Now, amid shifting global dynamics, particularly Donald Trump’s vocal support for cryptocurrencies during his return to the White House, Indian regulators appear to be adopting a more open stance.
Weekly Talks Replace Occasional Meetings
Ashish Singhal, co-founder of crypto platform CoinSwitch, told the Financial Times that interactions between crypto leaders and Indian officials have surged in 2025. “Now regulators are more closely talking to us, understanding what the space is,” Singhal noted, pointing to near-weekly discussions compared to biannual talks in the past.
The Reserve Bank of India (RBI) — once a fierce critic of crypto, now maintains a more neutral tone, according to Singhal. While skepticism remains, the days of comparing crypto to Ponzi schemes appear to be behind us.
Proposals to Replace 1% TDS With 0.1%
Industry leaders are advocating for a reduction of the 1% transaction tax (TDS) to 0.1%, suggesting this would provide transaction traceability without crippling domestic growth.
Despite rising dialogue, India’s February 2025 budget failed to include any tax relief for the crypto industry — a move that disappointed the Bharat Web3 Association. However, Ajay Seth, Secretary of Economic Affairs, confirmed that a redrafted policy paper is in progress.
Legal Pressure and Market Momentum
The Supreme Court of India recently questioned the central government over its delay in creating comprehensive crypto regulations. This legal nudge adds pressure as the industry continues to grow.
Major international players are returning: Binance and Coinbase, who had earlier withdrawn from India, are resuming operations. With the Indian crypto market currently valued at $2.5 billion, forecasts by Grant Thornton predict expansion to $15 billion by 2035.
Perception Gap Still Exists
Despite the increasing institutional engagement, public perception remains a challenge. Many Indians still believe crypto is illegal — a misconception stemming from years of government ambiguity.
However, tech-savvy millennials and Gen Z investors, especially from affluent backgrounds, are showing growing interest in digital assets, positioning India as a potential future crypto hub if regulatory clarity arrives.

This Post Appreared first on CryptosNewss.com
#IndiaCryptoTax #Bitcoin2025 #cryptotax $BTC

As of February 2, 2025, the cryptocurrency market is experiencing a significant downturn. Key factors contributing to this decline include:

1. Regulatory Uncertainty in India: India is reassessing its stance on cryptocurrencies due to evolving global perspectives. This reevaluation has delayed the release of a previously scheduled discussion paper, introducing uncertainty in a significant market.

2. Concerns Over U.S. Crypto Deregulation: The U.S. administration's recent moves to ease cryptocurrency regulations have raised concerns about potential market instability. Critics argue that rapid deregulation could lead to increased fraud and financial instability.

3. Profit-Taking Following Market Rally: After substantial gains in 2024, many investors are securing profits, leading to increased selling pressure and contributing to the current market decline.

4. Macroeconomic Factors: Broader economic concerns, including potential interest rate hikes by the Federal Reserve, are influencing investor sentiment. Higher interest rates can make riskier assets like cryptocurrencies less attractive, leading to decreased demand.

These factors collectively contribute to the current downturn in the cryptocurrency market.
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