Crypto Taxation in India 2025: What Has Changed?
The year 2025 has brought notable shifts in crypto taxation in India as the government fine-tunes its policies to balance innovation and regulation. Key updates include:
Reduction in TDS Rates: The Tax Deducted at Source (TDS) on crypto transactions has been reduced from 1% to 0.5%, encouraging more active trading.
Clarity on DeFi and Staking: Earnings from DeFi and staking are now categorized under "Other Income" and taxed at 20%, a step forward from previous ambiguity.
Offsetting Losses: For the first time, crypto investors can offset losses against gains within the same financial year, easing the tax burden.
NFT Taxation Rules: Clear regulations now tax NFT sales at 30% while exempting certain categories of artistic NFTs.
Enhanced Reporting Requirements: A new centralized portal simplifies crypto tax filing but mandates detailed reporting of holdings and transactions.
These changes signal India’s move toward a more structured crypto ecosystem while ensuring compliance. Investors should stay updated and consult tax professionals to navigate these evolving rules effectively.
