Budget 2025: How the government has planned to track crypto transactions better. Explained – CNBC TV18

Despite the industry expectations for tax relief, the government has placed 30% tax crypto income profit and 1% TD (cut at source) on unchanged transactions in the Union Budget 2025. This step underlines, maintains, maintains, maintains the government’s firm stance on digital assets. Strict taxation and compliance measures.

However, compliance with transactions in virtual assets has been tightened. The budget states, “It is proposed to bring amendment to the Act that a fixed reporting unit in relation to a crypto property will present information regarding transactions in such a crypto asset, in a statement, it is also there. It is proposed to align the definition of virtual digital asset. “

In other words, the government has proposed an amendment to the Income Tax Act, which requires nominated reporting institutions to disclose transaction details of virtual digital assets (VDAS).

What does this mean?

The government has maintained 1% TDS on 30% tax on crypto income and 1% on crypto transactions, both have been introduced in July 2022. In addition, it has not increased the security tax (STT) in crypto futures and options (F&O), keeping taxation, unchanged keeping taxation in mind.

While the cryptocurrency in India remains irregular, the introduction of a separate section for Virtual Digital Assets (VDA) in ITR forms for FY 2023-24 highlighted the government’s intentions to track crypto transactions. However, there is uncertainty about the treatment of crypto F&O, which is currently taxed as commercial income, as unlike regular VDA, tax is taxed as speculative income.

Industry experts were expecting more regulatory clarity to align with an amendment in high tax rates and global structure. The region also sought recognition of cryptocurrency in the form of a formal asset class and policy support for blockchain-based startups. However, Budget 2025 did not address these concerns, causing disappointment to investors and industry players.

Also read: Budget 2025: Today’s announcement has a look at big income tax numbers