Budget 2025: No relief for crypto investors, new compliance requirement introduced

economictimes.indiatimes.com:

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.»

India 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.

A key amendment in the Finance Bill proposes that entities dealing with crypto assets must furnish transaction details to the government.