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When the Minister of Finance, Nirmala Sitharaman, took a step forward to deliver the 2025 Union Budget, not only described the tax priorities: she triggered a new save in the regulatory battle of India against the transactions of cryptocurrencies not contacted.
Sitharaman proposed that the “virtual digital asset” will formally include in the definition of unleashed income, indicating a decisive change in the government’s approach to digital currencies.
This movement is more than a simple tax update. It comes following the growing concerns about unregulated cryptocurrencies that are used to mask illegal transactions. According to the new proposal, cryptocurrencies will be under section 158b of the Income Tax Law, a provision dedicated to informing “unleashed income.” This change is not only symbolic: delivery powers to government agencies, which allows them to carry out blocks of blocks or research on cryptographic holdings not reported from operators.
The budget document said: “It is proposed to add the term ‘virtual digital active’ to said definition of unleashed income from the block period.”
Tightening the rope even more, the government has proposed a clear schedule for such investigations. “It is proposed that the time limit to complete the evaluation of the block will be carried out as twelve months from the end of the quarter in which the last of the authorizations for the search or application has been executed,” said the budget document.
This is not an isolated development. Two years ago, India brought the cryptocurrency sector under laws against money laundering. The Ministry of Finance confirmed that these provisions now apply to the trade of cryptography, custody and related financial services. In addition to that, the country already enforces strict fiscal measures on cryptographic transactions, including commercial taxes.
The budget did not make any change in the 30 percent tax on cryptographic income or 1 percent of TDS in cryptographic transactions, which were implemented in July 2022. In the previous budget, the Minister of Finance, Nirmala Sitharaman, Futures and Cripto STT options excluded
