Here are 10 key impacts of the Income Tax Act, 2025 on crypto in India (latest FY 2026–27 context):
🔟 Impact Points
No change in core tax rate (30%)
Crypto (Virtual Digital Assets – VDAs) continues to be taxed at a flat 30% on profits.1% TDS still applicable
Every crypto transaction still attracts 1% TDS, affecting liquidity and frequent traders.Stronger reporting requirements
New Act emphasizes mandatory disclosure in ITR (Schedule VDA), increasing transparency.Higher compliance and tracking
Government is tightening monitoring; exchanges must maintain detailed transaction records.No set-off of losses remains
Losses from crypto cannot be adjusted against other income or even other crypto gains.Limited deductions allowed
Only cost of acquisition is allowed as deduction—no other expenses.Crypto included in undisclosed income scrutiny
New provisions treat hidden crypto holdings as undisclosed income with stricter penalties.Enhanced enforcement & notices (“nudges”)
Mismatches between TDS and ITR may trigger automated notices or audits.Global reporting integration (future impact)
India moving toward OECD crypto reporting → foreign wallets & offshore trades will be tracked.Overall shift: Simplification + stricter control
The Act aims to simplify tax structure but increase digital surveillance and compliance.The Income Tax Act, 2025 does NOT reduce crypto taxes, but it tightens compliance, reporting, and enforcement, making it harder to hide transactions while keeping taxation harsh for traders.