Centre Reveals Crypto Regulation and Tax Plans for Budget 2025 in Stock Market Update

The Union Budget 2025-26 did not bring any major relief for cryptocurrency investors, maintaining the 30% tax on crypto gains and the 1% TDS on transactions. However, Finance Minister Nirmala Sitharaman proposed a change to the Income Tax Act, requiring a designated reporting entity to disclose transaction details related to virtual digital assets (VDAs).
“It is proposed to amend the Income Tax Act to require a specified reporting entity to provide information on transactions involving a crypto asset in a prescribed statement. The definition of virtual digital asset will also be aligned accordingly,” reads the Budget document.
No changes in crypto taxation
The budget did not alter the 30% tax on crypto income or the 1% TDS on crypto transactions, which were introduced in July 2022. The Securities Transaction Tax (STT) was also not applied to crypto futures and options (F&O), maintaining the current tax structure.
Despite the lack of regulation for cryptocurrencies in India, the introduction of a separate section for VDAs in the ITR forms for FY 2023-24 indicated the government’s intent to monitor crypto transactions. In the previous budget, crypto futures and options were excluded from the proposed STT increase.
In the 2024 Budget, the minister raised STT on stock futures and options contracts but did not mention crypto futures and options as they are classified as commodities. Crypto investors were pleased with the decision not to impose TDS or a 30% tax on gains in the futures and options segment.
About crypto taxation
Crypto investors appreciated the exclusion of TDS and the 30% tax on crypto gains for futures and options. The government introduced a 1% TDS on all virtual digital assets, including cryptocurrencies, from July 1, 2022, to integrate them into the tax framework. The Finance Act of 2022 imposed a 30% tax rate on income from the transfer of VDAs, along with a surcharge and a cess.
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