The Indian government has been updating cryptocurrency tax rules every year. The 2025 Union Budget may bring new changes that impact traders and investors. Let’s look at how crypto taxation has evolved and what’s expected this year.
Crypto Tax in India Budget 2022
In 2022, the government introduced a 30% tax on crypto profits and a 1% TDS on every transaction. This was the first official step towards taxing digital assets.
Crypto Tax in India Budget 2023
The 2023 budget kept the same tax rules. However, many traders demanded a lower TDS rate to improve market activity.
Crypto Tax in India Budget 2024
By 2024, discussions on allowing loss set-offs and reducing TDS on small trades gained attention, but no major changes were made.
Crypto Tax in India Budget 2025
In 2025, the government may bring more clarity to crypto regulations. There is hope that the 1% TDS rule will be lowered, helping traders. If you buy Ethereum instantly in India., ensure you follow the latest tax rules.
How to Pay Tax on Cryptocurrency in India
Crypto profits are taxed under capital gains. You must report your earnings while filing taxes. Ensure you follow all guidelines to avoid penalties.
How to Avoid Crypto Tax in India
Avoiding tax is not legal, but you can reduce it by holding assets for the long term and offsetting losses against profits.
P2P Crypto Tax in India
Peer-to-peer (P2P) transactions are also taxed. Both buyers and sellers must comply with TDS and capital gains tax rules.
Conclusion
The 2025 budget may bring positive changes for crypto traders, but compliance is key. Stay updated on the latest tax regulations and follow the rules to avoid penalties.