Government Earns Rs 437 Crore from Crypto Income Tax in FY24, Marking 63% Growth
By Vizzve Finance
India’s cryptocurrency sector continues to mature, reflected in the government’s income tax collections. In FY24, the Indian government collected a total of Rs 437 crore in income tax from crypto-related earnings—an impressive 63% increase from the Rs 268 crore collected in FY23.
Rise in Crypto Compliance and Transactions
This surge can be attributed to the increasing clarity in tax regulations and enhanced tracking of virtual digital assets (VDAs). After the introduction of Section 115BBH under the Income Tax Act and 1% TDS under Section 194S, crypto exchanges and investors have been compelled to disclose gains from virtual currencies, leading to better compliance.
The increased crypto tax revenue suggests more Indians are now actively trading in digital assets, with platforms also aligning with KYC norms and automated tax deductions.
Breakdown of FY24 Crypto Tax Trends:
FY24 Tax Collected: Rs 437 crore
FY23 Tax Collected: Rs 268 crore
Year-on-Year Growth: 63%
Tax Applicable: 30% income tax on gains + 1% TDS on transactions
Primary Source: Tax deducted by crypto platforms and direct investor filings
What’s Driving the Growth?
Clear regulatory framework post-2022 Union Budget
Rise in retail and institutional crypto investors
Tighter TDS and PAN compliance mechanisms
Market rebound in 2023–24 with better-performing crypto assets
Crypto Industry’s Response
The crypto community views this increase as a positive indicator of mainstream adoption, despite ongoing regulatory uncertainty. While taxation is strict, it helps build legitimacy for digital assets.
Industry leaders are now calling for rationalized tax structures to prevent capital flight to overseas exchanges, and to support the growth of Web3 startups and blockchain innovation within India.
Frequently Asked Questions (FAQs)
1. How much tax did the Indian government collect from crypto in FY24?
The Indian government collected Rs 437 crore in income tax from cryptocurrency-related earnings in FY24, a significant 63% increase from Rs 268 crore in FY23.
2. Why did crypto tax collections increase in FY24?
The rise is due to:
Stricter tax compliance after the introduction of 30% income tax and 1% TDS on crypto.
Increased trading volumes and investor participation.
Improved tax reporting from exchanges and individuals.
3. What is the current tax structure for crypto in India?
India levies:
30% income tax on profits from crypto transfers (Section 115BBH).
1% TDS on each crypto transaction (Section 194S).
No deductions (other than acquisition cost) or setting off of losses are allowed.
4. Who deducts the TDS on crypto transactions?
Crypto exchanges registered in India are required to deduct TDS at 1% on behalf of users during transactions. Users must ensure proper PAN linkage for reporting.
5. Do I need to pay tax if I just hold crypto and don’t sell?
No tax is applicable for holding crypto. Tax is levied only when there’s a transfer/sale of crypto assets that results in capital gains.
6. Can losses from crypto be adjusted against other income?
No. Under current laws, losses from crypto cannot be offset against any other income or gains, nor carried forward.
7. Will crypto tax rates change in future budgets?
While the government hasn't announced revisions yet, the crypto industry continues to lobby for a reduction in the 30% flat tax rate and more flexible tax treatment.
8. Is income from NFTs also taxed like crypto?
Yes. NFTs (Non-Fungible Tokens) fall under the Virtual Digital Assets (VDA) category and are subject to the same tax rules as cryptocurrencies.
9. What is the penalty for not declaring crypto income?
Non-compliance can lead to penalties, interest charges, and scrutiny from tax authorities. Accurate disclosure of crypto income is strongly advised.
Published on: July 22, 2025
Published by: SELVI
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