Synopsis : The Indian government collected Rs 437 crore as income tax from crypto gains in FY24, marking a 63% jump from the previous year. Despite lacking specific crypto regulations, the 30% flat tax and 1% TDS continue to drive collections as authorities tighten scrutiny on crypto transactions.
The Indian government’s tax mop-up from cryptocurrencies surged to Rs 437.43 crore in FY24, up 63% from Rs 269.09 crore in FY23, the Finance Ministry informed Parliament. This increase follows the 30% flat tax on crypto profits introduced in April 2022, alongside a 1% TDS effective from July 2022, even as India does not yet have a dedicated law regulating cryptocurrencies.
Minister of State for Finance Pankaj Chaudhary stated that the government is leveraging data analytics tools like Project Insight and the Non-Filer Monitoring System to trace unreported VDA transactions. Under the NUDGE campaign, the tax department issued communications to taxpayers who failed to report crypto transactions despite TDS deductions, flagging discrepancies above Rs 1 lakh for corrective action.
The rising tax collection comes amid heightened concerns over crypto tax evasion, with reports of significant violations uncovered through data analysis. A report by Esya Centre highlighted that Indians traded over Rs 2.63 lakh crore on offshore crypto platforms between December 2023 and October 2024, potentially leaving more than Rs 6,000 crore in uncollected TDS. With crypto cyberattacks such as the $44 million CoinDCX breach and previous WazirX hacks in the backdrop, India’s crypto tax ecosystem is facing a critical phase of enforcement, compliance, and policy evolution.
Disclaimer : This article is for informational purposes only and does not constitute financial or legal advice. Readers are advised to consult professionals before making crypto investment or tax-related decisions.
