India's New Crypto Tax: Up To 70% Penalty On Undisclosed Gains

Coin Gabbar04 Feb, 2025Business

In a recent development, India's Finance Minister Nirmala Sitharaman announced significant amendments to the Income Tax Act, specifically targeting undisclosed cryptocurrency gains. Under the new provisions, any unreported income from virtual digital assets will be classified as undisclosed income, subjecting it to a substantial penalty of up to 70%. This move aims to enhance transparency and compliance within the crypto sector, ensuring that all crypto-related earnings are properly reported and taxed. The government emphasizes the importance of declaring all crypto holdings and transactions to avoid these severe penalties.