Crypto TDS crosses Rs 500 Cr as Maharashtra, Karnataka drive collections
Often called punitive by traders, a 1% TDS is levied on the sale, transfer, and spending of virtual digital assets, applying to all transactions where the income is taxable in India, including those involving offshore platforms.
India collected Rs 511.83 crore in tax deducted at source (TDS) from crypto transactions in FY24-25, up sharply from Rs 362.70 crore in FY23-24 and Rs 221.27 crore in FY22-23, government data showed.
Often called punitive by traders, a 1% TDS is levied on the sale, transfer, and spending of virtual digital assets, applying to all transactions where the income is taxable in India, including those involving offshore platforms.
Maharashtra remained the largest contributor, with TDS collections rising 30.63% to Rs 293.40 crore in FY24-25 from Rs 224.60 crore a year earlier.
Karnataka recorded the fastest growth among major states, with collections jumping 63.40% to Rs 133.94 crore from Rs 81.97 crore in the previous year. Gujarat was an outlier, with TDS slipping marginally to Rs 28.63 crore from Rs 29.29 crore.
Delhi posted a sharp uptick, with collections surging to Rs 28.33 crore from just Rs 99 lakh in the previous year, pointing to a shift in trading flows. Rajasthan was the last state to report double-digit collections at Rs 15.48 crore, while Tamil Nadu trailed with Rs 9.97 crore.
Indian tax authorities have also intensified enforcement against crypto platforms. Officials said several offshore exchanges serving Indian users were found to be out of compliance with the country’s TDS rules.
Survey actions carried out against three crypto exchanges uncovered unpaid TDS of Rs 39.8 crore and undisclosed income of Rs 125.79 crore.
Separately, search and survey operations across multiple entities linked to virtual digital asset transactions revealed additional undisclosed income of Rs 888.82 crore, highlighting the scale of tax leakages in the fast-growing crypto market.
The rise in tax collections coincided with a renewed rally for cryptocurrency. Bitcoin climbed 20.95% during FY24-25, rising from about $69,666 to $84,261, hitting record levels during the period and reviving retail and institutional interest and profit booking.
Edited by Suman Singh