India’s Crypto TDS Collections Surge 41% to ₹511.83 Crore in FY25
India's cryptocurrency tax landscape is tightening, with TDS collections jumping 41% year-on-year to ₹511.83 crore ($57 million) in FY25. The 1% withholding tax on virtual asset transactions—implemented under Section 194S—has now generated over ₹1,096 crore since its 2022 introduction, signaling robust government surveillance of digital asset flows.
Maharashtra dominates as the compliance hub, contributing ₹293.4 crore (30.6% growth), while Karnataka's 63.4% surge to ₹133.94 crore reveals shifting geographic activity. Delhi's 28.33 crore haul underscores institutional participation, though Gujarat saw a rare 2.3% dip. These figures track exchange registrations, not physical trading locations—a critical distinction as offshore platforms face increasing scrutiny.
The policy framework remains uncompromising: 30% income tax on VDA gains paired with real-time TDS tracking creates what analysts call 'the most transparent crypto tax regime in emerging markets.' As Finance Ministry data reveals the mechanism's effectiveness, industry observers note compliance costs may reshape India's crypto ecosystem permanently.
