The government has collected ₹5.12 billion as tax deducted at source (TDS) during 2024-25 (Apr-Mar) on transactions involving cryptocurrencies and other virtual digital assets, Minister of State for Finance Pankaj Chaudhary said on Monday.
The government imposes a flat 30% tax on profits earned from cryptocurrency transactions; it also levies a separate 1% TDS on the transaction value each time a digital asset is bought or sold.
The 1% TDS helps the tax department track transactions, while the 30% tax applies only to the gains made from them.
How much TDS did government collect?
The TDS collected on such transactions jumped up 41% in FY25, from ₹3.63 billion in FY24, according to Chaudhary’s written response to a question raised in the Lok Sabha.
Among Indian states with the highest cryptocurrency activity, Maharashtra and Karnataka together accounted for over 80% of crypto transactions, with state-wise TDS collection of ₹2.93 billion and ₹1.34 billion, respectively.
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