A recent dataset shared with the Indian parliament shows that cryptocurrency transactions increased by 51,000 crore in the year 2024-2025. This is significant as it represents a 41 per cent rise from the previous year. The data presented by the Finance Ministry in the Rajya Sabha shows that 511.8 crore rupees were collected by the government as tax deducted at source on transactions related to crypto in 2024-2025.
The rate of Tax Collected at Source stands at 1% on each transaction; therefore, the value of Tax transactions stood at 51,180 crore. The Finance Act of 2022 mandated a new provision in the Income Tax Act 1961, which the government kept intact in the 2025 Income Tax Act. The reform mandates 1% TDS on any Virtual Digital Assets or cryptocurrency.
In 2022-2023, the government collected a total TCS of 221.3 crore. In 2023-2024, this amount increased to 362.7 crore. This implies a total transaction worth of 22,130 crore in 2022-2023 and 36,270 crore in the consecutive year. In the response, the ministry also confirmed that the Income Tax Department found that three crypto exchanges operating in the country were not following TDS provisions worth 39.8 crore and have been able to prevent disclosures of 125.79 crore.
As India’s economy improves, digital currency helps promote more inclusion and increased independence. However, there are several shortcomings of crypto; the 2025 Income Tax Act and other provisions of the government have been made to streamline the transactions in crypto.
