Income Tax Act – The value of cryptocurrency transactions in India is set to exceed ₹51,000 crore in 2024-25, showing a growth of 41% over the previous year, according to an analysis of data shared with Parliament. Data shared by the Finance Ministry in response to a question in the Rajya Sabha shows that the government collected ₹511. 8 crore as tax deducted at source (TDS) on crypto transactions in 2024-25.

Since the rate of tax collection at source (TCS) on each transaction is 1%, this means that the total value of transactions that year was ₹51,180 crore. Under the Finance Act 2022, the government had introduced a provision in the Income Tax Act 1961, which has been retained in the Income Tax Act 2025, mandating 1% TDS on any transfer of Virtual Digital Assets (VDAs) or cryptocurrencies. The government had collected TCS of ₹221.

3 crore in 2022-23 and ₹362. 7 crore in 2023-24, which means transactions worth ₹22,130 crore and ₹36,270 crore were made in those two years, respectively. The reply said the Income Tax Department had conducted survey action against three crypto exchanges operating in India and had found non-compliance of TDS provision of ₹39.

8 crore and undisclosed income of ₹125. 79 crore. “Search and seizure operations under section 132 aforesaid and survey action under section 133A of the Income Tax Act against various entities resulted in detection of undisclosed income of Rs 888.

82 crore relating to VDA transactions,” the reply said.