Union Budget 2025: A New Era for Crypto Taxation

The Union Budget 2025 has introduced stringent regulations for cryptocurrency trading, maintaining the existing 30% tax levy. This move signifies a tightening of the reins on crypto transactions, affecting traders and investors alike.

Impact on Crypto Traders

With the new amendments, crypto traders face increased challenges. The inability to offset losses against profits from other crypto trades or alternative income sources adds to the financial burden. Moreover, virtual digital assets are now considered part of undisclosed income, attracting higher tax rates.

Expanded Disclosure Requirements

Taxpayers are now required to provide more detailed disclosures regarding their crypto trading income in their income-tax returns. This expanded requirement aims to increase transparency and compliance in the crypto market.

Global Implications

The Organisation for Economic Co-operation and Development (OECD) has developed a Crypto Assets Reporting Framework, which India is implementing. This framework facilitates the automatic exchange of tax-relevant information on crypto assets, aligning India with global standards.