India Targets Crypto Transparency with Fresh Tax Rules in Budget 2025
India’s financial landscape is set for change as Budget 2025 debuts new protocols for cryptocurrency taxation and transaction oversight. With the introduction of Section 285BAA, crypto exchanges and related parties are now required to submit comprehensive transaction reports to the Income Tax Department. This directive ensures that the crypto market remains under similar scrutiny as traditional financial instruments like stocks and mutual funds.
Under the new provision, reporting entities will have to maintain meticulous records, submit them in a prescribed format, and swiftly correct any discrepancies when apprised. A missed deadline or inaccurate submission could evoke corrective notices, reflecting the government’s commitment to rigorous financial discipline.
Furthermore, the definition of Virtual Digital Assets is extended to broadly encompass various digital currencies and tokens, leaving little room for ambiguity in what falls within the tax scope.
Taxation on income via digital assets remains inflexible — set at 30% without the ability to set off losses against other income. By upholding such firm taxation rules and enhancing surveillance of the crypto domain, Budget 2025 emphasizes the Indian government’s resolve to regulate the market and bolster economic transparency.
