Key Points:
- India crypto regulation gains will now be classified under Virtual Digital Assets (VDAs) and subject to block assessments if undisclosed, aligning with traditional assets like jewelry and bullion.
- The government uncovered $97M in unpaid GST from crypto exchanges and previously demanded $85M from Binance, reinforcing India crypto regulation with stricter oversight.
- Traders could face a 70% tax penalty on undisclosed crypto profits from the past 48 months, urging compliance to avoid severe financial consequences.
Indian cryptocurrency traders may face severe tax penalties on previously undisclosed profits following new amendments to the country’s tax laws.
India Crypto Regulation Gains Now Subject to Block Assessments
As part of the Union Budget 2025, Finance Minister Nirmala Sitharaman announced that cryptocurrencies will now be covered under Section 158B of the Income Tax Act, which deals with undisclosed income. This marks a significant shift in India crypto regulation, signaling stricter oversight in the digital asset sector.
Under the amendment, crypto gains will be subject to block assessments if not reported, putting them on the same level as traditional assets such as money, jewellery, and bullion. The update also formally classifies crypto under Virtual Digital Assets (VDAs) and requires reporting entities to disclose crypto holdings under Section 285BAA. The revised India crypto regulation will be retrospectively applicable from February 1, 2025.
Read more: Indian Crypto Adoption Still Tops the World
Massive Tax Evasion Crackdown on Crypto Exchanges
The Indian government has intensified its crackdown on crypto-related tax evasion as part of its evolving India crypto regulation policies. At the end of December 2024, Minister of State for Finance Pankaj Chaudhary reported $97 million in unpaid GST from multiple crypto exchanges. Earlier in August, Indian authorities demanded $85 million in unpaid taxes from Binance, reinforcing the India crypto regulation framework. These developments highlight the government’s determination to tighten India crypto regulation and ensure compliance within the crypto industry.
Indian authorities may impose a tax penalty of up to 70% on undisclosed crypto gains, applicable to profits hidden for up to 48 months after the tax assessment year. The amendments arrive just two weeks after Bybit suspended operations in India on January 10, citing regulatory pressure due to shifting India crypto regulation. As India crypto regulation becomes stricter, traders must now ensure full tax transparency to avoid steep penalties and legal repercussions.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Latest
Bitwise Bitcoin Standard Corporations ETF Launched as Corporate Crypto Adoption Grows
Fidelity Ethereum ETF Eyes Staking Approval As Ether Price Falls Sharply
Singapore Exchange to Launch Bitcoin Perpetual Futures in 2025
Press Release
BitMart to Showcase Innovations at Paris Blockchain Week, Booth #67, and Host Exclusive Seine & Crypto Connect Afterparty
Ethereum’s Latest Market Moves Suggest This Altcoin Could Be the Best Investment for 2025
