India reassesses policies on digital currencies amid global changes. Updates on tax regulations and penalties for investors.
Following a global shift towards digital currencies, especially with the new policies in the US, India is also reevaluating its own policies. Ajay Seth, India’s Secretary of Economic Affairs, told Reuters on Monday that the release of a discussion document on digital assets scheduled for September 2024 has been delayed. However, in the 2025 union budget, no relief has been provided on the 30% tax on digital currency profits and the 1% Tax Deducted at Source (TDS) deduction for each transaction. Additionally, under a new amendment, investors failing to report their digital currency income may face a 70% penalty.
