Crypto TDS Spikes 41% in India: Maharashtra, Karnataka Lead the Charge
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India's tax authorities have collected a record ₹511.83 crore in taxes deducted at source (TDS) from virtual digital assets (VDA) transactions in 2024-25, a 41% surge from the previous fiscal year. The data, released by the finance ministry, reveals that crypto exchanges based in Maharashtra led the charge with ₹293.40 crore in TDS collections, followed closely by Karnataka with ₹133.94 crore and Gujarat with ₹28.63 crore. While Delhi's TDS collection jumped to ₹28.33 crore, a significant increase from the previous year, Gujarat saw a 2.3% decline in TDS collections. Other states, including Rajasthan and Tamil Nadu, reported varying levels of TDS collections, ranging from ₹15.48 crore to ₹9.97 crore. The 1% TDS mandatory on VDA transactions, introduced in the Union Budget 2022-23, has been instrumental in keeping a tab on each transaction. The government has taken action against 18 cryptocurrency exchanges for Goods and Services Tax (GST) evasion worth over ₹824 crore and has sent over 44,000 communications to taxpayers who failed to report their VDA transactions in their income-tax returns. As the government continues to regulate the VDA market, the number of registered Virtual Asset Service Providers (VASPs) with the Financial Intelligence Unit (FIU-IND) has risen to 47. While overseas entities catering to Indian clients are under the scanner for non-compliance, domestic VASPs are largely adhering to the TDS provisions.
