Odaily News India is reviewing its stance on cryptocurrencies as other countries shift their attitudes toward crypto assets, Economic Affairs Minister Ajay Seth said in an interview.
The review, which comes after U.S. President Trump announced crypto-friendly policies, could further delay the release of a cryptocurrency discussion paper originally scheduled for September 2024.
“More than one or two jurisdictions have changed their stance on cryptocurrencies in terms of usage, acceptance, and how they view the significance of crypto assets. As part of this process, we are revisiting this discussion paper,” Seth said.
It said that because such assets "are not bound by national borders," India's position cannot be unilateral, but did not specifically mention the United States. [Reuters]
Yesterday, according to Indian Finance Minister Nirmala Sitharaman's announcement in the 2025 federal budget, cryptocurrencies will be included in Section 158B of the Income Tax Act for reporting undisclosed income. The amendment allows for collective assessment of unreported cryptocurrency gains, giving them the same tax treatment as traditional assets such as currency, jewelry and gold bars.
Under the new amendments, cryptocurrencies will fall under the definition of virtual digital assets (VDAs).
In a sign of concern for cryptocurrency holders, Indian authorities may impose tax penalties of up to 70% on previously undisclosed cryptocurrency profits. According to the document, the penalty may apply to undisclosed crypto gains for up to 48 months after the relevant tax assessment year, the document reads: "70% of the total amount of tax and interest payable on the additional income disclosed in the updated income tax return [ITR]."