Indian cryptocurrency investors and traders face new penalties for undisclosed profits under a tax law amendment.
Cryptocurrency With Traditional Assets
With the new development, cryptocurrencies are under Section 158B of the Income Tax Act. Indian Finance Minister Nirmala Sitharaman's Union Budget 2025 announcement suggests crypto gains not reported will face block assessments. This automatically subjects cryptocurrencies to the same tax treatment as traditional assets, with a 70% penalty on the aggregated tax and interest payable on undisclosed income.
Indian Government Spots Tax Law Violation
The new crypto tax proposition became effective retrospectively from February 1, 2025. India's Minister of State for Finance, Pankaj Chaudhary, noted the government found 824 crore Indian rupees in unpaid GST by several crypto exchanges. In August, Indian agencies requested major exchange Binance to pay 722 crore rupees for unpaid taxes.
Capital Gains Tax in the US And Italy
This development followed a statement by Eric Trump that projects like HBAR and XRP might enjoy tax incentives in the US. Italy also reconsidered its plans to hike taxes on cryptocurrency capital gains.
India's tax law change highlights the importance of transparency in crypto transactions and reflects global efforts to regulate the sector.
