India's crypto tax storm is here: from warnings to 30% profit tax + 1% TDS

HashBandit · 2025-12-31T08:40:11+00:00

India's tax authorities are investigating cryptocurrency income for the 2024-25 fiscal year, using exchange data and withholding tax records for tracking. Trading profits are taxed at 30%, and a 1% withholding tax is required on transactions. The regulatory stance is shifting towards active enforcement, and traders must proactively disclose assets and trading activities to ensure compliance.

HashBandit

2025-12-31 08:40:11

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[Crypto World] The Indian tax authorities have recently taken significant action. They have initiated inquiries under Section 133(6) of the Income Tax Act, specifically targeting cryptocurrency income for the 2024-25 fiscal year. This includes not only transfer income from Virtual Data Accounts (VDA) but also trading profits.

Tracking methods have been upgraded. The government is now utilizing data from KYC-compliant exchanges, withholding tax (TDS) records, and annual information reports (AIR) linked to PAN cards to uncover the truth behind transactions. This means every transaction you make is traceable.

Tax policies have also become stricter. The current framework imposes a 30% tax on trading profits, and a 1% withholding tax on the transactions themselves. The goal of this system is very clear — to increase market transparency.

From a regulatory perspective, authorities have shifted from issuing warnings to active enforcement. This change in stance indicates one thing: compliance is no longer optional but mandatory. For traders active in India, proactively disclosing crypto assets and trading activities has become a necessary step.

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Blockwatcher9000

· 2h ago

I'll just say it, India is really coming hard this time, with a 30% tax rate + 1% TDS. Who can handle this? It's hard to understand what the government is thinking, suddenly linking exchange data, PAN cards, and everything else. It feels like there's nowhere to hide. Compliance has truly become a must-have option, but I've seen this trend early on. Regulations have never been lenient. Indian traders will have to think carefully about what to do now. Do we have similar policies in our country? With this pace, it seems other countries will follow soon. Has the era of global compliance arrived?

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BridgeNomad

· 9h ago

ngl india's playbook here is literally the bridge exploit postmortem we all saw coming... they're pulling KYC data + TDS records like some kind of on-chain transaction trace, except it's actual financial surveillance. 30% + 1% tds? that's not transparency, that's optimal extraction routing lol

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DeadTrades_Walking

· 9h ago

Damn, India is really serious this time. 30% profit tax + 1% TDS just blew everyone's mind. If I had known it would be like this now, I might as well just be honest and go to work. Exchange KYC data is fully transparent. Shouldn't you also consider whitewashing? This move by India is actually setting an example for other countries. It’s only a matter of time before it happens here. Compliance is really not an optional question anymore; it’s a must-answer question.

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CryptoComedian

· 9h ago

India is serious this time, with a 30%+1% combined attack. Exchange data is fully transparent, and it feels like there's nowhere to hide. Laughing to tears, today's leek farmer diary has been updated again. Brothers, regulation has escalated from warnings to enforcement. This time it's not a scare; those who owe taxes should prepare their wallets. Data speaks for itself. KYC plus TDS plus AIS—every transaction is under their watch. Privacy? Not possible. A 30% tax rate is really harsh. Exchanges want to harvest leeks, and tax authorities won't let them off. Being caught in the middle is really uncomfortable. India's crackdown speed is faster than the price fluctuations of coins. Compliance is now a mandatory requirement, not just a suggestion. The meme king says, "Crypto," but compliance is the biggest profit. Don't save that little tax money only to end up losing everything in the end.

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BlockImposter

· 9h ago

Damn, India is really going all in now, with 30% taxes and duties taking off directly. Hey, just asking, how panicked must the people at Indian exchanges be right now? Compliance has truly become a must-have now, unavoidable rhythm. KYC, PAN card, AIS all in play, privacy is almost gone. 1% TDS is nothing much, but that 30% cut really hurts. Are Indians now all thinking about how to optimize their taxes? By the way, with a 30% tax rate, is anyone still trading in India? Now it's all over—every transaction is being watched closely, say goodbye to privacy. From warnings to enforcement, the turnaround is so quick, catching people off guard.

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OldLeekNewSickle

· 9h ago

Wow, India has really started to get serious. With a combination of 30% profit tax + 1% TDS, what profit margin is left?

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LiquidityWitch

· 9h ago

nah india's just summoning the tax demons now... 30% + 1% TDS? that's some heavy liquidation sacrifice energy fr fr. every trade gets traced through their dark pools of bureaucracy lmao

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WagmiWarrior

· 9h ago

India's move is really serious this time, with 30% cut directly to the death, should have run earlier --- So now all exchange data is fully transparent, there's nowhere to hide --- Compliance is not just a suggestion, the regulation was long overdue --- 1% TDS, I just laughed, plus an additional 30% tax, my blood pressure is rising --- KYC exchange data reporting one set after another, feels like being monitored --- From warning to enforcement so quickly? India is really determined --- Now retail investors should be panicking, no matter how they handle their coins, taxes are due --- A 30% profit tax should be a loss, directly announcing a bottom-fishing in Indian exchanges

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