Lok Sabha Question No. 1194 (UNSTARRED), answered on 2025-12-08
Subject: Taxation of Crypto-Currency in the Country
Ministry: FINANCE
Asked by: Shri Magunta Sreenivasulu Reddy, Shri Putta Mahesh Kumar

## 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:
- b) 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.

| Sr. No   | State            | Total Tax Deducted - FY2022 - 23 (Amount in Cr.)   | Total Tax Deducted - FY2023 - 24 (Amount in Cr.)   | Total Tax Deducted - FY2024 - 25 (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                                             | 511.83                                             |

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