Neutral impactEconomy
Income Tax Act 2025: What crypto investors should know about VDA provisions, TDS and ITR filing rules
Mint 1 hr ago·25 Sept 2026, 7:25 pm
The newly amended Income Tax Act, 2025 introduces updates to the tax treatment of Virtual Digital Assets (VDAs). The legislation largely retains the existing framework, including the flat 30% tax on gains and the 1% Tax Deducted at Source (TDS) on transactions exceeding a certain threshold. However, the code has been reorganized, with specific section numbers changed to reflect these provisions.
For retail investors, the key takeaway is the introduction of a new reporting framework. This requires investors to maintain detailed records of their crypto transactions and wallet addresses. The government aims to enhance transparency and compliance, making it easier to track digital asset movements within the formal financial system.
Investors should prepare to adjust their record-keeping processes to align with these new requirements. Ensuring that all transaction data is accurate and accessible will be crucial for smooth ITR filing and avoiding potential compliance issues under the updated regulations.
Excerpt from Mint
The Income-tax Act, 2025 largely retains the existing tax treatment of VDAs, including the 30% tax and 1% TDS. However, section numbers have changed and a new reporting framework for crypto transactions will require investors to maintain detailed transaction and wallet records. With the Income-tax Act, 2025 now in…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
