Synopsis
Budget 2025: The Union Budget 2025 keeps existing crypto tax rules unchanged, maintaining the 1% TDS and loss offset restrictions. Industry leaders express concerns over investor challenges, talent migration, and heavy taxation, while regulatory updates signal a step toward formal governance.
The Union Budget 2025 has kept the existing tax rules on virtual digital assets (VDAs) unchanged, despite repeated calls from the cryptocurrency industry for reforms.
Finance Minister Nirmala Sitharaman did not announce any revisions to the 1% TDS (tax deducted at source) on crypto transactions or the restriction on offsetting losses. Industry experts believe these policies continue to be a hurdle for investors and traders.
Edul Patel, CEO and Co-founder of Mudrex, said, “While regulatory clarity remains, the lack of revisions—particularly on the 1% TDS and the inability to offset losses—continues to pose challenges for investors, traders, and the industry.”
Crypto Tracker
TOP COIN SETSDeFi Tracker4.55% BuyWeb3 Tracker2.52% BuySmart Contract Tracker-1.83% BuyCrypto Blue Chip – 5-2.03% BuyNFT & Metaverse Tracker-8.03% BuyTOP COINS (₹) Tether87 (0.16%)BuyEthereum281,311 (-2.27%)BuyBitcoin8,842,467 (-2.52%)BuyXRP258 (-3.59%)BuySolana19,745 (-4.24%)BuyIndia has a high level of grassroots crypto adoption, but heavy taxation has pushed many traders to offshore exchanges. Patel added that reducing TDS to 0.01% and allowing loss offsets could have helped the sector grow sustainably and encouraged innovation.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details »A key amendment in the Finance Bill proposes that entities dealing with crypto assets must furnish transaction details to the government. The definition of VDAs will also be updated accordingly. Additionally, VDAs will now be included in the definition of “undisclosed income,” and investigations into hidden assets will have to be completed within 12 months.
Stock Trading
Maximise Returns by Investing in the Right Companies
View Program
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
View Program
Stock Trading
Technical Analysis for Everyone – Technical Analysis Course
View Program
Stock Trading
Stock Markets Made Easy
View Program
Stock Trading
Renko Chart Patterns Made Easy
View Program
Stock Trading
Market 101: An Insight into Trendlines and Momentum
View Program
Stock Trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
View Program
Stock Trading
Dow Theory Made Easy
View Program
Stock Trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
View Program
Stock Trading
ROC Made Easy: Master Course for ROC Stock Indicator
View Program
Stock Trading
Heikin Ashi Trading Tactics: Master the Art of Trading
View Program
Stock Trading
RSI Made Easy: RSI Trading Course
View Program
Stock Trading
Introduction to Technical Analysis & Candlestick Theory
View Program
Industry Reaction
Thangapandi Durai, CEO of Koinpark, pointed out the need for clearer tax regulations. “The absence of clarity on crypto tax remains a concern for the sector, which would benefit from clearer regulatory guidance. The success of these initiatives will depend on effective execution and follow-through in the coming months.”
Avinash Shekhar, Co-Founder & CEO of Pi42, also expressed concerns over the lack of direction on VDA regulations. “With no clear regulatory direction, the country continues to lose significant tech talent to more crypto-friendly nations like Singapore and Dubai. The 30% tax on closure profits and 1% TDS on transactions are causing Indian investors to miss out on opportunities in the rapidly expanding global crypto market.”
Ashish Singhal, Co-founder of CoinSwitch and Lemonn, noted that while the budget did not bring tax relief, the inclusion of VDA governance in the Finance Bill is a step toward better regulation. “It reflects the growing adoption of digital assets and acknowledges their impact on the economy.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
