it only means India will keep their assets in crypto as ling as they can! 🤪🤪🤪

70% Tax Penalty for Unreported Crypto Gains in India

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The Indian Government is not taking it easy at all with crypto trading, with the undisclosed gains incurring tax penalties of up to 70%. This amendment was introduced under Section 158B of the Income Tax Act by Finance Minister Nirmala Sitharaman through the union budget 2025. 
Crypto is now categorized as Virtual Digital Assets (VDAs) under new rules that can impose heavy fines on unreported gains going back to the past four years. Another reason for embracing this new system is that crypto exchanges and financial institutions are required to report all crypto-related transactions to the authorities. These tax rules now class crypto earnings in the same wrapper as cash, jewelry, and gold assets.
The Indian government is already tightening the noose on tax evaders in the crypto sector. In the previous year, authorities found $97 million worth of outstanding Goods and Services Tax (GST) associated with crypto exchange platforms. Big entities like Binance and Bybit have already come under scrutiny, with the company ceasing its operations in India on January 10 as a result of regulatory pressure.
India isn’t the only country to tighten crypto regulations. The Internal Revenue Service (IRS) in the U.S. will begin imposing more stringent reporting on tax payments for digital asset transactions in 2025. The move has drawn backlash, with some crypto groups even suing the IRS, claiming that the updated rules are unconstitutional.