India’s income tax law is all set to redefine the Indian crypto space. The new income tax law from India, which contains provisions for digital assets, may clarify the definition of crypto assets and bring much-needed legislative certainty.
Amid the new laws, the industry is now voicing out how they feel about the new treatment crypto is about to receive.
India’s New Tax Bill: What Does It Say About Crypto?
By classifying cryptocurrencies and other digital assets as “virtual assets,” the measure may create taxation standards for them, paving the way for uniform treatment throughout the sector.
With distinct rates for short-term and long-term capital gains, the proposed tax structure most likely entails taxing profits from cryptocurrency assets as income.
This might guarantee that cryptocurrency-related businesses, exchanges, and investors are aware of their tax responsibilities.
Furthermore, the bill might cover topics like compliance procedures and reporting requirements, promoting openness and legal compliance. By offering a statutory definition, India might encourage more institutional use and discourage illegal activity in the cryptocurrency field.
Anish Jain, Founder, W Chain says “The cryptocurrency market is experiencing a dynamic phase, marked by volatility and growth opportunities. India’s Income Tax Bill 2025 has clarified the treatment of crypto as ‘Undisclosed Income.’ This move has sparked discussions, with investors carefully assessing the implications for tax reporting and compliance.”
He adds, “While some worry about potential categorization as ‘undisclosed income,’ the bill also brings clarity by defining VDAs under Section 2(47A) of the Income Tax Act. The crypto market anticipates increased transparency and formalization of crypto investments, with the dedicated Schedule VDA in the Income Tax Return streamlining the reporting process.”
Also Read: Coinbase Seeks Regulatory Approval as It Prepares for a Comeback in India’s Cryptocurrency Sector
Industry Welcomes India’s New Measures in Latest Tax Bill
While many industry players have been unsure about how the new tax bill will turnout for them, many have also welcomes it.
Shivam Thakral, CEO of BuyUcoin says “We at BuyUcoin welcome the Income Tax Bill 2025’s move to include crypto as ‘undisclosed income,’ as it shows a commitment to transparency within the virtual digital asset space in India. This measure aligns with our long-standing efforts to operate with the highest ethical standards and prevent money laundering.”
“We believe clear regulations will foster greater confidence in the crypto ecosystem, benefiting our crypto users.”
“We are ready to help our users understand and comply with these new guidelines, ensuring they can confidently and securely participate in the digital economy. We see this as a positive step towards establishing India as a leader in responsible digital asset innovation.” he added.
New Tax Laws to Likely Help India Progress in Crypto Space
India’s young workforce, developing infrastructure, and burgeoning digital economy are some of the main drivers of its anticipated growth. India has a considerable demographic advantage as the most populous nation in the world, with a sizable and technologically literate populace that is embracing innovation and technology more and more.
Growth will be further accelerated by the government’s push for digital transformation through programs like “Digital India” and its emphasis on infrastructure development.
Additionally, India is positioned as a major player in the global economy because to its growing startup ecosystem, rising foreign investment, and international trade agreements. It is anticipated that this expansion would be strong, creating jobs and economic prospects.
Also Read: Indian Govt Introduces 70% Penalty on Undeclared Crypto Gains, Lookback Period Set At 48 Months