Govt says collected INR 5.1 bln TDS on cryptocurrency transactions in FY25
This story was originally published at 15:17 IST on 8 December 2025
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NEW DELHI – The government collected INR 5.12 billion in 2024-25 (Apr-Mar) as tax deducted at source on transactions relating to cryptocurrencies or virtual digital assets, Minister of State for Finance Pankaj Chaudhary said Monday. The government levies 1% TDS on such transactions.
The TDS collected on such transactions jumped up 41% in FY25 from INR 3.63 billion in FY24, according to Chaudhary's written response to a question in the Lok Sabha. Maharashtra and Karnataka accounted for over 80% of cryptocurrency transactions in India, with state-wise TDS collection of INR 2.93 billion and INR 1.34 billion, respectively.
The government and the Reserve Bank of India deem cryptocurrency as virtual digital assets. Besides the 1% TDS on such transactions, the government also levies a 30% tax on gains from these transactions.
The government has not carried out any studies for the implementation of taxation models for cryptocurrencies, as in other countries such as Thailand and Indonesia, Chaudhary said. To ensure anti-money laundering and counter-terrorism financing through these assets, the Financial Intelligence Unit registers all Virtual Asset Service Providers under the Prevention of Money Laundering Act, Chaudhary said. "This registration requirement applies equally to domestic and offshore platforms that cater to users based in India." End
Reported by Krity Ambey
Edited by Ashish Shirke
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