• Notification Date: 05-02-2025
• Notification No: N/A

Budget 2025: No relief for Cryptocurrencies, new rules on TDS remain intact

The taxation structure of cryptocurrencies and Virtual Digital Assets in Budget 2025 is identical to previous budgets. Crypto transactions are still at a flat 30% plus applicable surcharge and cess for income tax purposes. No rules of the Finance Act, 2022 have been amended.

The taxation framework continues to treat Bitcoins, Ethereums, among others, as VDAs. Profits made from sales are taxed at 30%. Only the cost incurred to acquire them can be deducted. These, however, cannot include any transaction fees and other related costs. Surprisingly, losses accrued from VDAs cannot be set off against income from any other source.

Second, the Budget extends the 1% TDS on VDA transactions. Its quantum shall stay at Rs. 10,000 for an Individual having an ITR filer from the Salary Background, but shall stand raised at Rs. 50,000 for all types of Business transaction. All this income shall require to be accounted under Schedule VDA of the ITR2 or ITR3.

CBDT has waived penalties for those taxpayers who have not filed TDS return on crypto income in 2022-2023 subject to filing Form 26QE by May 30, 2023.