India’s Crypto Tax Revenue Soars to ₹437 Crore in FY 2024 – A Bullish Signal for Digital Assets?
India’s crypto ecosystem just flexed its financial muscle—hard. The government raked in a staggering ₹437 crore in crypto taxes for FY 2024, proving digital assets aren’t just speculative toys but serious revenue generators.
Taxman’s new favorite asset class? Hint: It’s not gold.
While traditional finance gatekeepers clutch their pearls, crypto’s silent ascent continues. The numbers don’t lie—even if your broker still thinks blockchain is a prison accessory.
Table of Contents
Toggle- What Is The Current Crypto Tax Regime in India?
- How Does TDS Impact Crypto Tax?
- Are Crypto Tax Evasions a Growing Concern?
- Conclusion
- Frequently Asked Questions
- How To Sell Pi Coin in India?
- What Is The Best Crypto For Long Term Holding in 2025?
- How To Start Bitcoin SIP in India?
What Is The Current Crypto Tax Regime in India?
Since April 1, 2022, India has introduced a separate tax regime to treat VDAs, and this has huge effects on crypto tax. Any earnings on buying or selling cryptocurrencies or NFTs are taxed at a flat 30% rate, with no deductions allowed except for the cost of acquisition. Also, losses made in crypto transactions cannot be deducted against other income or carried through, thereby making crypto tax a heavy burden on traders.
This approach ensures that gains are taxed separately, aiming to curb speculative trading while increasing government revenue. The regime shows India’s cautious stance towards the volatile crypto market, giving importance to fiscal control.
How Does TDS Impact Crypto Tax?
Introduced in July 2022, a 1% Tax Deducted at Source (TDS) applies to crypto transactions exceeding a specific threshold. Unlike income tax, the main aim of TDS is not to get revenue but rather to set a transaction trail, which can be traced by tax authorities. This mechanism enhances transparency in crypto tax by enabling the Income Tax Department to track trading activities.
The TDS requirement compels exchanges to report transactions, and therefore make it more difficult to evade crypto tax. With a digital footprint, the government can cross-check on the reported income with the transactions, making compliance stronger.
Are Crypto Tax Evasions a Growing Concern?While the Finance Ministry has not quantified the extent of tax evasion, it acknowledges that violations in crypto tax are being actively monitored. The non-compliant accounts are also being investigated upon and the authorities are targeting the taxpayers who do not report crypto income in spite of TDS being deducted.
The rising tax collections indicate improved enforcement, but evasion remains a challenge. The highly speculative characteristic of cryptocurrencies, pseudonymous transactions, complicates efforts to ensure full compliance with crypto tax. The active approach of the government indicates that tax evasion in the area will become more focused.
ConclusionThe rise of crypto tax to an overwhelming ₹437.4 crore in FY2023-24 shows that India is taking a very strong stand in regulating VDAs. With a 30% flat tax, 1% TDS, the government is ensuring that crypto taxes are both transparent and enforceable. Nonetheless, there are issues, such as tax evasion and breaches, which imply that the investors in the crypto market should remain vigilant.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Frequently Asked QuestionsHow To Sell Pi Coin in India?
You can easily deposit your Pi coins and sell them directly on SunCrypto.
What Is The Best Crypto For Long Term Holding in 2025?
The best cryptos for long-term holding in 2025 are Bitcoin, ethereum and Solana.
How To Start Bitcoin SIP in India?
You can easily start your Bitcoin SIP on SunCrypto. Here you can get a wide range of tokens, zero buying fees and the ability to modify your SIP anytime.
