๐ฎ๐ณ ๐๐ก๐๐๐ ๐๐ฆ ๐๐๐ข๐ฆ๐๐ก๐ ๐๐ก ๐ข๐ก ๐จ๐ก๐ฅ๐๐ฃ๐ข๐ฅ๐ง๐๐ ๐๐ฅ๐ฌ๐ฃ๐ง๐ข ๐ง๐ฅ๐๐๐๐ก๐ ๐จ
Indiaโs tax authorities are now watching crypto exchanges like hawks to make sure every trade is reported and taxed properly.
The countryโs crypto market is booming, over โน51,000 crore traded in FY 2024โ25, a 41% jump from the previous year, but the government is serious about cracking down on any unreported or shady activity.
Hereโs what you need to know:
โข Exchanges must report all transactions accurately and on time. Fines and penalties will hit those who fail.
โข Cross-border crypto transaction reporting will start in April 2027, meaning even offshore trades could be monitored.
โข Authorities are deploying AI and advanced analytics to find mismatches and detect tax evasion.
โข Existing tax rules are strict: profits are taxed at 30%, every transfer is subject to 1% TDS, and losses cannot offset gains.
What does this mean for traders?
โข Frequent trading could now be much more expensive.
โข Confusing rules and penalties might push some trading activity offshore or into unregulated channels.
โข Exchanges are under pressure to tighten compliance, which could slow down trading or make some platforms stricter.
This isnโt just a warning, itโs a real crackdown on anyone trying to hide crypto income.
Will Indiaโs tighter monitoring finally make the market safer and more transparent, or will it just punish regular traders and push activity overseas?