🇮🇳 #India Reaffirms Strict Crypto Taxes, Denies Access to ETFs

The Indian government has confirmed no changes to the harsh crypto tax regime:

30% flat tax on crypto gains (no deduction for expenses or losses).

1% TDS on all transactions involving Virtual Digital Assets (VDAs). 

ETFs Still Banned Domestically:

Crypto ETFs are not allowed for domestic trading.

Indians can invest in international spot Bitcoin #ETFs only via LRS, which is limited and comes with capital controls and tax complexities.

Enforcement Ramps Up:

Authorities have recovered ₹437 crore in unpaid crypto taxes.

AI and analytics are being used to detect unreported trades and mismatches in tax filings.

Mandatory Reporting (FY 2025–26 onward):

Banks, exchanges, and financial institutions will be legally required to report VDA transactions.

Aligned with OECD's Crypto-Asset Reporting Framework (CARF) for global tax transparency.

International Alignment:

India is joining G20 peers by preparing to implement CARF.

This will reduce opportunities for tax evasion and force Indian investors to declare offshore crypto holdings.

India’s crypto policy in 2025 remains punitive, not progressive. While enforcement is tightening and global frameworks like CARF are being adopted, there is still no sign of regulatory modernization or innovation support.