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India's Crypto Tax Haul Doubles Amidst Rally
8 Dec
Summary
- India's crypto TDS collections reached Rs 511.83 crore in FY24-25.
- Maharashtra leads with Rs 293.40 crore, Karnataka shows fastest growth.
- Enforcement actions uncovered significant unpaid TDS and undisclosed income.
India has witnessed a substantial surge in tax revenue derived from virtual digital asset transactions. In FY24-25, the collected Tax Deducted at Source (TDS) reached Rs 511.83 crore, marking a considerable increase from previous years. This rise is attributed to a 1% TDS levied on the sale, transfer, and spending of these assets, applicable to all taxable income within India, including transactions facilitated by offshore platforms.
Maharashtra continues to be the largest contributor to these collections, with Rs 293.40 crore in FY24-25, a 30.63% increase year-on-year. Karnataka demonstrated the fastest growth among major states, with collections jumping 63.40% to Rs 133.94 crore. Delhi also saw a dramatic rise, indicating shifting trading flows, while Gujarat experienced a slight decrease.
Indian tax authorities have stepped up enforcement, targeting both domestic and offshore crypto exchanges for non-compliance with TDS regulations. Survey operations have uncovered significant amounts of unpaid TDS and undisclosed income, underscoring the scale of tax leakages in the rapidly expanding crypto market. This intensified scrutiny coincides with a cryptocurrency market rally.
