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In India, TDS on cryptocurrency is applicable if the transaction value exceeds ₹50,000 (or ₹10,000 as appropriate) in a financial year. The TDS rate for Although unregulated, the Indian government recently executed a 30% tax on cryptocurrency earnings and a 1% tax deducted at source as part of the Union Budget India's tax collections pulled in over $19 million for FY2025. FM Nirmala Sitharman imposed 1% TDS and 30% tax on crypto income during the Union Budget The Government of India has raked up ₹158 crores or $19 million as TDS from its crypto investors, as of 20th March 2025. According to information provided to the Parliament Indian tax authorities collected Rs 158 crore (approx. $19 million) in TDS on the transfer of virtual digital assets (VDA) till March 20, Minister of State for Finance Pankaj Chaudhary told the According to the Union Finance Ministry, on payments made following the transfer of Virtual Digital Assets [VDA], a direct tax of over $19 million or Rs. 157.9 crores was

India Pays Up: Over $19 Million Collected Through TDS on Crypto

The Indian government has collected a significant amount through Tax Deducted at Source (TDS) on cryptocurrency transactions. As of March 20, 2025, the Government of India raked in ₹158 crores, approximately $19 million, as TDS from its crypto investors. This revenue highlights the impact of the new tax regime on virtual digital assets (VDAs) in the country. According to information provided to the Parliament, Indian tax authorities collected Rs 158 crore (approx. $19 million) in TDS on the transfer of virtual digital assets (VDA) till March 20, Minister of State for Finance Pankaj Chaudhary told the.

The implementation of TDS on crypto is a key element of India's approach to regulating this burgeoning asset class. In India, TDS on cryptocurrency is applicable if the transaction value exceeds ₹50,000 (or ₹10,000 as appropriate) in a financial year. The TDS rate for transactions is 1%. This means that for every crypto transaction exceeding the specified threshold, 1% of the transaction value is deducted as TDS.

Understanding India's Crypto Tax Policy

Although unregulated, the Indian government recently executed a 30% tax on cryptocurrency earnings and a 1% tax deducted at source as part of the Union Budget. India's tax collections pulled in over $19 million for FY2025. FM Nirmala Sitharaman imposed 1% TDS and 30% tax on crypto income during the Union Budget. This framework aims to bring clarity and revenue to the government from the growing crypto market. This $19 million revenue provides a glimpse into the potential of cryptocurrency taxation in India.

According to the Union Finance Ministry, on payments made following the transfer of Virtual Digital Assets [VDA], a direct tax of over $19 million or Rs. 157.9 crores was collected. This substantial collection underscores the effectiveness of the TDS mechanism in capturing revenue from crypto transactions. The combination of the 30% tax on crypto gains and the 1% TDS is generating significant revenue streams for the Indian government.

While the debate on the long-term regulatory framework for crypto continues, the immediate impact of the tax policy is evident in the significant TDS collections. As the crypto market evolves, the Indian government is likely to refine its policies to balance revenue generation with the promotion of innovation in the blockchain space.

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