Govt collected Rs 437 crore as income tax from crypto in FY24, up 63% from FY23

By | July 22, 2025
crypto tax India FY24 bar graph showing 63% increase from FY23

India’s crypto tax system delivered a major revenue boost in FY24, with the government collecting ₹437 crore in income tax from digital asset gains. This amount shows a sharp 63% increase compared to the ₹268 crore collected in FY23. The surge signals growing investor activity, improved reporting, and tighter enforcement.

How Crypto Tax Changed the Game

In April 2022, India introduced a new tax regime for virtual digital assets (VDAs). These include cryptocurrencies and NFTs. Under this system:

  • Investors must pay a 30% flat tax on profits from crypto.
  • A 1% TDS applies to transactions above ₹10,000.
  • No deductions are allowed except for acquisition costs.
  • Losses from crypto can’t be offset or carried forward.

This strict approach aims to ensure better oversight of digital asset transactions.

Why the Tax Collection Rose So Sharply

The rise in tax revenue didn’t happen by chance. Several factors helped push the numbers up:

1. More Investors Returned to the Market

Crypto markets began recovering in 2024. Bitcoin crossed the $60,000 mark again. As a result, many Indian investors started trading actively. When they booked profits, they had to pay taxes.

2. Authorities Tracked Crypto Transactions Better

The Income Tax Department received more detailed data from exchanges. This helped them identify users who made gains but didn’t declare them. Tax officers then matched these records with ITR filings.

3. Government Sent Reminders to Taxpayers

Through a “nudge” campaign, the government sent notices and emails to users. These reminded them to file crypto income correctly. Many taxpayers complied, which boosted the tax inflow.

Mixed Response from the Industry

While the government is satisfied with the increased collections, the industry has concerns. Many crypto companies and startups argue that the current tax structure is too harsh.

Ashish Singhal, co-founder of PeepalCo, recently said the sector is hoping for lower tax rates in the upcoming Union Budget. Industry leaders are asking for:

  • A reduction in TDS from 1% to 0.01% or 0.05%
  • Recognition of losses in crypto trading
  • Clear guidelines on asset classification

Until reforms are made, India’s Web3 sector may struggle to grow compared to global counterparts.

Income Tax Department Increases Oversight

Over 12 million Indian users traded crypto in FY24. The tax department is now watching ITR filings closely. They are looking for gaps between what users reported and the TDS deducted by exchanges.

Some users didn’t fill out Schedule VDA—the section meant for crypto reporting. This has led to warning notices and potential penalties. Tax professionals now advise all crypto investors to double-check their filings.

Global Context: India’s Conservative Stand

Globally, countries like the U.S., Australia, and Japan have set clearer rules for crypto. Most allow users to deduct losses or claim costs beyond acquisition. India, however, has chosen a more rigid path.

Although strict, this policy has helped India improve transparency in the digital asset space. The Finance Ministry has also hinted at building a full crypto framework. This would align with the G20’s global crypto rules.

What This Means for Investors

If you traded crypto in FY24, you should:

  • File Schedule VDA in your ITR
  • Report all crypto income, including from staking or airdrops
  • Ensure your TDS records match your tax filings
  • Keep receipts of transactions and exchange statements

Failure to do so may result in penalties, reassessment, or even legal action. As the system becomes stricter, investors must take their tax responsibilities seriously.

The Bigger Picture

The ₹437 crore collected is more than just a number. It reflects India’s push to bring digital assets under the tax net. More importantly, it highlights how financial behavior is changing. As digital finance becomes more common, regulation is catching up fast.

For now, crypto users in India must comply with a challenging tax regime. But with the possibility of reform on the horizon, the industry remains cautiously optimistic.