Current Status of Crypto Regulation in India (as of July 2025)
🔸️ Legality of Holding/Trading: Cryptocurrencies are legal to buy, sell, and hold in India.
🔸️They are classified as Virtual Digital Assets (VDAs) under the Income Tax Act, 1961.
🔸️ Legal Tender Status:
🔸️ Cryptocurrencies are not recognized as legal tender. This means they cannot be used for everyday transactions like buying groceries or paying for services. The Indian Rupee (INR) remains the sole legal tender.
Taxation:
🔹️ A 30% flat tax is imposed on profits from cryptocurrency sales.
🔹️ A 1% Tax Deducted at Source (TDS) applies to transactions above ₹10,000 per year (or ₹50,000 for specified persons).
🔹️ No deductions other than the cost of acquisition are allowed.
🔹️ Losses from crypto cannot be offset against other income.
