**Executive Summary**
This document addresses Lok Sabha Un-Starred Question No. 1194 regarding the taxation of cryptocurrency in India, answered on December 8, 2025. It details tax and TDS collected from crypto exchanges, compliance status, studies conducted, and actions taken against non-compliant exchanges. The response is provided by the Minister of State in the Ministry of Finance.
**Key Points / Main Content**
* **Tax and TDS Collection:**
* Provides state-wise and year-wise details (FY 2022-23, FY 2023-24, FY 2024-25) of total tax and TDS collected from users by crypto exchange platforms across the country, with a focus on Andhra Pradesh.
* **Regulatory Measures and Compliance:**
* Financial Intelligence Unit (FIU-IND) registers Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA) to ensure AML/CFT oversight, applicable to both domestic and offshore platforms catering to Indian users.
* Finance Act, 2022 introduced Section 194S in the Income-tax Act, 1961, mandating a 1% Tax Deducted at Source (TDS) on the transfer of Virtual Digital Assets (VDAs).
* Observed that certain offshore cryptocurrency exchanges serving Indian users are not complying with the TDS provisions prescribed under the Income-tax Act.
* **Surveys and Actions Against Non-Compliance:**
* Survey actions under Section 133A of the Income Tax Act, 1961 were carried out against 3 Crypto Exchanges.
* Detected non-compliance of TDS provision under Section 194S to the tune of Rs. 39.8 Crores and undisclosed income to the tune of Rs. 125.79 Crores.
* Additional search and seizure operations under Section 132 and Survey actions under Section 133A of the Income Tax Act against various entities resulted in the detection of undisclosed income related to VDA transactions amounting to Rs. 888.82 crore.
* **International Studies:**
* No studies have been undertaken for the implementation of taxation models as seen in other countries such as Thailand and Indonesia for crypto-currency.
**Impact Analysis**
**Virtual Asset Service Providers (VASPs)**
* **Impact**: Must register with the FIU-IND under the PMLA to operate legally in India. Both domestic and offshore platforms serving Indian users are affected.
* **Action Required**: Ensure registration and compliance with PMLA regulations.
**Crypto Exchange Platforms**
* **Impact**: Subject to Section 194S of the Income-tax Act, 1961, requiring a 1% TDS on VDA transfers. Non-compliance can lead to surveys, searches, and detection of undisclosed income.
* **Action Required**: Implement TDS deductions as per Section 194S and ensure compliance with all Income-tax Act provisions.
**Indian Crypto Users**
* **Impact**: TDS is deducted on VDA transfers, affecting the net proceeds from transactions.
* **Action Required**: Comply with tax regulations related to VDAs and ensure accurate reporting of crypto transactions.
Key Entities Referenced
Income-tax Act, 1961: Referenced as the legal basis for TDS deductions and survey actions related to crypto transactions.
Section 194S of the Income-tax Act, 1961: Introduced by the Finance Act, 2022, mandating a 1% Tax Deducted at Source (TDS) on the transfer of Virtual Digital Assets (VDAs).
Prevention of Money Laundering Act (PMLA): Used to register Virtual Asset Service Providers (VASPs).
Ministry of Finance: The primary governmental body responsible for the administration of the policy on crypto-currency taxation.
Financial Intelligence Unit (FIU-IND): Registers Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA).
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UN-STARRED QUESTION NO. 1194
TO BE ANSWERED ON MONDAY, DECEMBER 8, 2025/AGRAHAYANA 17, 1947 (SAKA)
‘Taxation of Crypto-Currency in the Country’
1194. Shri Pulla Mahesh Kumar and Shri Magunta Sreenivasulu Reddy:
Will the Minister of FINANCE be pleased to state: -
(a) The details regarding the total tax and TDS collected from users by crypto exchange
platforms during the last three years across the country, State-wise particularly Andhra
Pradesh, and year-wise;
(b) The details of the list of crypto-exchanges that have been non-complaint with tax
payments and not applying TDS deductions on crypto transactions on their platforms during
the last three years, year-wise;
(c) Whether the Government has conducted a study/survey regarding the non-payment of
TDS deductions on crypto-currency transactions during the last five years;
(d) If so, details regarding the list of exchanges identified and action undertaken against such
exchanges during the last three years, year-wise;
(e) Whether the Government has conducted any studies for implementation of taxation
models as seen in other countries such as Thailand and Indonesia for crypto-currency, if so,
the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINSITRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
a) The details regarding the total TDS collected from users by crypto exchange
platforms during the last three years across the country, State-wise particularly
Andhra Pradesh, and year-wise is provided below:Sr. No State Total Tax Deducted - Total Tax Deducted- Total Tax Deducted-
FY 2022-23 (Amount FY 2023-24 FY 2024-25
in Cr.) (Amount in Cr.) (Amount in Cr.)
1 Andhra Pradesh 0.04 0.07 0.12
2 Assam 0.0003 -
3 Bihar 0.01 0.02 0.01
4 Chandigarh - 0.11 -
5 Chhattisgarh 0.05 0.0003 0.0003
6 Delhi 0.35 0.99 28.33
7 Gujarat 17.15 29.29 28.63
8 Haryana 1.24 0.83 0.64
9 Himachal Pradesh - 0.02 0.02
10 Jammu & Kashmir - 0.00005 -
11 Karnataka 38.85 81.97 133.94
12 Kerala 0.13 0.05 0.04
13 Madhya Pradesh 0.001 0.02 0.01
14 Maharashtra 142.83 224.60 293.40
15 Odisha 0.01 0.04 0.01
16 Pondicherry 0.003 - -
17 Punjab 0.24 0.0018 0.05
18 Rajasthan 8.85 15.72 15.48
19 Tamil Nadu 9.58 8.00 9.97
20 Telangana 1.01 0.19 0.08
21 Uttar Pradesh 0.76 0.60 0.50
22 Uttarakhand 0.0009 0.002 -
23 West Bengal 0.16 0.21 0.60
Total 221.27 362.70 511.83b) To ensure oversight from an anti-money laundering and countering the financing of
terrorism (AML/CFT) perspective, the Financial Intelligence Unit (FIU-IND) registers
Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act
(PMLA). This registration requirement applies equally to domestic and offshore platforms
that cater to users based in India. Further, the Finance Act, 2022, introduced Section 194S
in the Income-tax Act, 1961, mandating a 1% Tax Deducted at Source (TDS) on the
transfer of Virtual Digital Assets (VDAs). This applies to all transactions, including those
involving offshore entities, if the income is chargeable to tax in India. It has been observed
that certain offshore cryptocurrency exchanges serving Indian users are not complying
with the TDS provisions prescribed under the Income-tax Act.
c) & d) Yes, the Survey actions u/s 133A of Income Tax Act.1961 were carried out against 03
Crypto Exchanges and non-compliance of TDS provision u/s 194S to the tune of Rs. 39.8
Crores and undisclosed income to the tune of Rs. 125.79 Crores, were detected. In
addition to the above search and seizure operations under Section 132 and Survey actions
under Section 133A of the Income Tax Act against various entities resulted in the
detection of undisclosed income related to VDA transactions amounting to Rs. 888.82
crore.
e) No studies for implementation of taxation models as seen in other countries such as
Thailand and Indonesia for crypto-currency have been undertaken.
******