Government Collects ₹512 Crore TDS On Crypto In FY25
The government collected ₹511.83 crore as TDS from cryptocurrency and other virtual digital asset transactions in FY25. This marks a sharp increase from the previous year, when around ₹363 crore was collected. Officials said the rise reflects more trading activity and better reporting by exchanges.
Current tax rules for crypto
Profits from crypto trading are taxed at a flat 30% rate, with no deductions allowed for expenses except the cost of acquisition. In addition, a 1% TDS is applied every time a crypto asset is sold. The rules apply to residents and non-residents if the transaction takes place on an Indian exchange or involves an Indian resident.
Trading volumes and compliance
The increase in TDS suggests that more investors are active in the crypto market. It also indicates that exchanges are deducting and depositing tax as required. Authorities have been monitoring platforms closely to ensure compliance under the current tax framework.
Impact on investors
Traders must maintain detailed records of transactions because losses from crypto cannot be set off against other income. They also cannot use losses from one digital asset to reduce gains from another. The tax rules have made frequent trading more expensive, but they have also pushed the sector toward greater transparency.
