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India Crypto Tax Statistics for 2026

Name: India Crypto Tax Statistics for 2026
Creator: KoinX
Published: 2026-04-21T10:07:22.979Z

Researched By: Avinash D.

Reviewed By: Ankush Kumar

Published: 21 Apr 2026

Last Updated: 21 Apr 2026

India occupies a position unlike any other jurisdiction in the global crypto tax landscape: the world’s largest grassroots crypto market by adoption, governed by one of its strictest tax regimes, with no comprehensive regulatory law yet in force. As FY 2025-26 unfolds, India’s crypto ecosystem is defined by a flat 30% tax on Virtual Digital Asset gains with no loss-offset permitted, a 1% Tax Deducted at Source on every transaction, over 44,000 tax compliance notices issued in a single enforcement campaign, and enforcement agencies seizing billions of rupees in proceeds of crime under the Prevention of Money Laundering Act.

The numbers that emerge from official parliamentary disclosures, Ministry of Finance statements, FIU-IND annual reports, Chainalysis research, and Income Tax Department actions paint a picture of an industry simultaneously surging in adoption and confronting escalating compliance pressure. TDS collections from Virtual Digital Asset transfers crossed ₹1,095 crore in just three years. The Enforcement Directorate has attached or seized over ₹4,189 crore in crypto-linked proceeds of crime. 49 exchanges are now registered as reporting entities under PMLA, and India has ranked first in the Chainalysis Global Crypto Adoption Index for three consecutive years.

At KoinX, we support investors and tax professionals navigating India’s VDA tax framework, and the data in this article reflects precisely the compliance environment in which every Indian crypto participant operates today.

This article consolidates verified statistics from primary sources including parliamentary statements by the Ministry of Finance, FIU-IND annual reports, CBDT disclosures, Chainalysis Geography of Cryptocurrency reports, and official legislative records. Every statistic is sourced directly to its originating document.

Scope and Methodology

All statistics in this article originate from primary sources that produced the data themselves. Eligible sources include Indian government bodies and ministries (Ministry of Finance, CBDT, FIU-IND, Enforcement Directorate), official parliamentary question responses, blockchain analytics firms publishing original on-chain research (Chainalysis), and regulatory disclosures from exchanges and enforcement agencies.

Sources were required to identify their methodology, data collection basis, or institutional authority. Aggregator blogs, news summaries, and third-party compilations were excluded. Every source URL points directly to the originating document, parliamentary record, annual report, or official press release.

Recency was enforced: only data published within the last two years was included. Where an older figure is the most recent available, its original publication year is stated explicitly in the bullet. Geographic scope is India-specific throughout, covering federal tax law, state-level TDS distribution, exchange-level compliance, and enforcement statistics. All statistics are presented atomically with one data point per bullet. A material limitation is that the Indian government does not systematically collect or publish aggregate data on the number of crypto taxpayers or the total voluntary tax paid on VDA gains, limiting direct measurement of compliance rates.

India Crypto Adoption and Tax at a Glance: 2026 Statistics

India ranked first in the Chainalysis Global Crypto Adoption Index for the third consecutive year in 2025, leading all 151 countries assessed across all four sub-indices including retail centralized transactions, total centralized service value, DeFi volumes, and institutional activity, based on the 2025 Chainalysis Global Crypto Adoption Index published September 2025.
India processed $2.36 trillion in cryptocurrency transactions between July 2024 and June 2025, a 69% year-over-year increase from $1.4 trillion in the prior period, making the Asia-Pacific region the fastest-growing crypto market globally during the same period, based on the Chainalysis 2025 Geography of Cryptocurrency Report.
The total value of Virtual Digital Asset transactions in India reached ₹51,180 crore (approximately $6 billion) in FY 2024-25, up 41% from ₹36,270 crore in FY 2023-24 and ₹22,130 crore in FY 2022-23, as disclosed by the Ministry of Finance in the Rajya Sabha in December 2025.
The CBDT issued 44,057 compliance communications under its NUDGE campaign to taxpayers who invested or traded in VDAs but did not report these in Schedule VDA of their Income Tax Returns, as stated by Minister of State for Finance Pankaj Chaudhary in a written reply to the Lok Sabha in December 2025.
The Enforcement Directorate attached, seized, or froze proceeds of crime worth ₹4,189.89 crore in crypto-related cases under PMLA, arrested 29 individuals, and filed 22 prosecution complaints, with one accused declared a Fugitive Economic Offender, as disclosed to Parliament by the Ministry of Finance in December 2025.
TDS collected under Section 194S on Virtual Digital Asset transfers in FY 2024-25 reached ₹511.83 crore (approximately $60 million), a 41% increase from ₹362.7 crore in FY 2023-24, based on the Ministry of Finance statement to Rajya Sabha in December 2025.
As of March 2025, 49 Virtual Digital Asset Service Providers were registered with FIU-IND as reporting entities under PMLA, of which 45 were India-based and 4 were offshore platforms, based on the FIU-IND Annual Report for FY 2024-25 published January 2026.
During search and seizure operations, the CBDT detected ₹888.82 crore in undisclosed income from Virtual Digital Asset transactions, as stated by Minister of State for Finance Pankaj Chaudhary in a written reply to Parliament in December 2025.
India’s crypto tax regime includes a flat 30% tax on all VDA transfer gains with a 4% cess, no deduction permitted except cost of acquisition, no loss offset against other income or against gains from other VDAs, and a 1% TDS under Section 194S on transactions exceeding ₹10,000 annually, as established in the Finance Act 2022 and the Income Tax Act 1961.

Adoption and Transaction Volume Statistics

India ranked first in the 2024 Chainalysis Global Crypto Adoption Index for the second consecutive year, leading 151 countries assessed on transaction volume, DeFi activity, peer-to-peer exchange usage, and centralized service engagement, based on the Chainalysis 2024 Global Crypto Adoption Index published September 2024.
The Asia-Pacific region, led by India, Pakistan, and Vietnam, recorded a 69% year-over-year increase in on-chain cryptocurrency transaction volume between July 2024 and June 2025, rising from approximately $1.4 trillion to $2.36 trillion, based on the 2025 Chainalysis Geography of Cryptocurrency Report.
India’s cumulative VDA transaction value across three financial years totals approximately ₹1,09,580 crore: ₹22,130 crore in FY 2022-23, ₹36,270 crore in FY 2023-24, and ₹51,180 crore in FY 2024-25, representing a 131% cumulative increase over the three-year period, as calculated from Ministry of Finance data disclosed in the Rajya Sabha in December 2025.
Maharashtra was the largest contributor to TDS collection from crypto transactions in FY 2024-25 with ₹293.4 crore (approximately $34 million), followed by Karnataka with ₹133.94 crore, as disclosed by the Ministry of Finance in Rajya Sabha in December 2025.
In December 2025, CoinDCX recorded ₹51,333 crore in trading volume for FY 2024-25, with the platform’s annual investor report showing that on average Indian crypto investors now hold 5 different tokens, compared to 2 to 3 tokens in 2022, based on the CoinDCX 2025 Annual Report.
Among Indian crypto investors tracked by CoinDCX in FY 2024-25, 43.3% of portfolio volume was dedicated to Layer-1 networks, 26.5% to Bitcoin, and 11.8% to meme tokens, based on the CoinDCX 2025 Annual Report referenced in a December 2025 parliamentary disclosure discussion.

Tax Collection and TDS Statistics

Total TDS collected under Section 194S on Virtual Digital Asset transfers over three financial years from FY 2022-23 to FY 2024-25 exceeded ₹1,095.8 crore (approximately $128 million): ₹221.27 crore in FY 2022-23, ₹362.7 crore in FY 2023-24, and ₹511.83 crore in FY 2024-25, based on Ministry of Finance data disclosed to Rajya Sabha in December 2025.
The Ministry of Finance disclosed that TDS collection on VDA transactions grew 41% from FY 2023-24 to FY 2024-25, rising from ₹362.7 crore to ₹511.83 crore, with TDS levied at 1% per transaction implying that total VDA trading volumes for FY 2024-25 were approximately ₹51,180 crore, as reported in parliamentary disclosures by Minister of State for Finance Pankaj Chaudhary in December 2025.
Under Section 115BBH of the Income Tax Act, profits from the transfer of Virtual Digital Assets including cryptocurrencies and NFTs are taxed at a flat 30% rate plus 4% cess, with no deduction permitted except the cost of acquisition and no provision for loss set-off against any other income, as established in the Finance Act 2022 applicable from April 1, 2022.
Under Section 194S of the Income Tax Act, a 1% TDS is deducted on the transfer of VDAs when the total transaction value exceeds ₹50,000 per financial year for specified individuals (individuals or HUFs not subject to audit) and ₹10,000 per financial year for all other persons, with the TDS applicable to both crypto-to-fiat and crypto-to-crypto transfers from July 1, 2022, as codified in the Finance Act 2022.
The Union Budget 2025 introduced VDAs into the definition of undisclosed income under the Income Tax Act, meaning unreported crypto holdings discovered during a search may be taxed under the block assessment framework at 60% plus applicable surcharge and cess from February 1, 2025, based on the Finance Bill 2025 enacted provisions as discussed in official tax guidance.
Failure to deduct or pay TDS under Section 194S may result in penalties equal to the unpaid TDS amount under Section 271C, with potential imprisonment from 3 months to 7 years plus a fine under Section 276B for willful evasion, as provided in the Finance Act 2022 amendments to the Income Tax Act 1961.
Starting FY 2025-26, crypto exchanges and other designated entities are required to submit mandatory transaction reports to tax authorities under Income Tax Act provisions introduced in Union Budget 2025, supplementing the existing TDS mechanism and extending institutional reporting obligations, based on Finance Ministry guidance on the new mandatory reporting framework.

Compliance and Reporting Statistics

The Income Tax Return forms for FY 2022-23 onward include a dedicated Schedule VDA section requiring taxpayers to declare gains from cryptocurrency and other Virtual Digital Assets, with reporting mandatory even for small trades, as established under CBDT ITR notification circulars referenced in Ministry of Finance parliamentary disclosures.
The CBDT detected ₹888.82 crore in undisclosed income from VDA transactions during search and seizure operations by comparing VASP-reported TDS returns against taxpayer ITRs using Project Insight and the Non-Filer Monitoring System (NMS), as stated by Minister of State for Finance Pankaj Chaudhary to Parliament in December 2025.
The Income Tax Department also identified 3 major crypto exchanges as non-compliant with TDS obligations, resulting in ₹125.79 crore in unaccounted income and ₹39.8 crore in TDS shortfall, as disclosed in parliamentary records cited in December 2025 coverage.
VASP-reported TDS returns are cross-matched against taxpayer Income Tax Returns to identify discrepancies; non-declaration of VDA activities in Schedule VDA is treated as undisclosed income subject to penalties that can reach up to 60% plus surcharge if discovered during investigation, as confirmed in CBDT enforcement disclosures to Parliament in December 2025.
India does not collect systematic national data on the number of crypto taxpayers or total voluntary VDA income tax paid, as stated explicitly by Minister of State for Finance Pankaj Chaudhary to Parliament in December 2025: “the government does not collect data on them,” referring to crypto-assets as remaining unregulated and borderless.
The Income Tax e-Filing portal’s dedicated VDA helpdesk handled nearly 300,000 queries in FY 2024-25, indicating widespread difficulty among taxpayers in accurately completing Schedule VDA disclosures, as reported in regulatory monitoring data for FY 2024-25.

Enforcement and Prosecution Statistics

The CBDT issued 44,057 compliance notices under the NUDGE campaign (Non-Intrusive Usage of Data to Guide and Enable) to taxpayers who traded in VDAs but failed to report these in Schedule VDA of their ITRs, as stated by Minister of State for Finance Pankaj Chaudhary in a December 2025 reply to the Lok Sabha.
In August 2025, India’s Income Tax Department issued formal enforcement notices to over 44,000 cryptocurrency traders for failing to disclose VDA income in their income tax returns, with the CBDT launching reassessment notices, surveys, and search-and-seizure operations under the Income Tax Act 1961, as reported from a Rajya Sabha session in August 2025.
Authorities uncovered approximately ₹630 crore in unreported income from VDA transactions during FY 2022-23 and FY 2023-24, compared to ₹705 crore that was voluntarily disclosed by taxpayers during the same period, as cited in CCN.com reporting on August 2025 enforcement data from CBDT.
The Enforcement Directorate investigated crypto-related PMLA cases resulting in the attachment, seizure, or freezing of proceeds of crime totaling ₹4,189.89 crore, with 29 arrests, 22 prosecution complaints filed, and 1 accused declared a Fugitive Economic Offender, as confirmed by Minister of State for Finance Pankaj Chaudhary in December 2025 parliamentary disclosure.
In February 2025, the Enforcement Directorate seized its largest-ever cryptocurrency holding of ₹1,646 crore in a PMLA case linked to the BitConnect lending fraud, a scheme that defrauded investors between November 2016 and January 2018, based on the Ahmedabad ED office press release reported by Business Standard on February 15, 2025.
In October 2025, the Enforcement Directorate attached cryptocurrency worth approximately ₹2,385 crore under PMLA in the OctaFX forex fraud investigation, bringing total assets seized or attached in the OctaFX case to over ₹2,681 crore, as reported from the provisional attachment order issued by ED in October 2025.
In one documented enforcement case, FIU-IND intelligence enabled Indian agencies to trace funds and attach immovable property worth ₹205 crore in a foreign jurisdiction, demonstrating cross-border asset recovery capacity, based on FIU-IND Annual Report FY 2024-25 disclosed in January 2026.

Exchange Registration and AML Compliance Statistics

As of March 2025, 49 Virtual Digital Asset Service Providers were registered with FIU-IND as PMLA reporting entities: 45 India-based and 4 offshore, all required to submit Suspicious Transaction Reports, verify beneficial ownership of wallets, monitor ICO/ITO fundraising activity, and track transfers between hosted and unhosted wallets, based on the FIU-IND Annual Report FY 2024-25.
During FY 2024-25, FIU-IND imposed total penalties of ₹28 crore (approximately $3.1 million) on non-compliant crypto exchanges following risk-based inspections, with penalties covering gaps in KYC systems, transaction monitoring, record-keeping, and STR reporting obligations, based on the FIU-IND Annual Report FY 2024-25.
In October 2025, FIU-IND issued non-compliance notices to 25 additional offshore virtual digital asset service providers for operating without PMLA registration and directed that their platforms, apps, and URLs be taken down, blocking access for Indian users, based on FIU-IND regulatory actions reported in January 2026.
In June 2024, FIU-IND issued a detailed compliance order against Binance (Nest Services Limited) for operating without PMLA registration and failing to meet KYC/AML obligations; Binance paid ₹18.82 crore (approximately $2.27 million) in penalties and registered as a PMLA reporting entity, based on the FIU-IND order of June 2024 referenced in Global Legal Insights 2026.
In January 2025, Bybit Fintech Limited was fined ₹9.27 crore by FIU-IND for operating in India without PMLA registration, based on the FIU-IND penalty order referenced in Global Legal Insights 2026.
In August 2024, India’s Directorate General of GST Intelligence (DGGI) issued a show-cause notice to Binance (Nest Services Limited) alleging ₹722.43 crore (approximately $85 million) in unpaid Goods and Services Tax on transaction fees collected from Indian users between July 2017 and March 2024, in the first GST enforcement action against a major international crypto exchange, based on the Economic Times report of August 2024 referenced in Global Legal Insights 2026.
17 VDA Service Providers were investigated by the DGGI for GST evasion, with total evasion amounting to ₹824.14 crore ($96 million); Nest Services Limited (a Binance group company) contributed ₹722.43 crore of this total, and WazirX (Zanmai Labs Pvt. Ltd.) accounted for ₹40.51 crore, as disclosed by Minister of State for Finance Pankaj Chaudhary in parliament and reported by crypto.news in December 2024.
FIU-IND’s Suspicious Transaction Report analysis for FY 2024-25 identified high-risk activity categories including scam and fraud, online gambling, peer-to-peer scams, and individual cases involving red flags linked to child sexual abuse material, terror financing, dark web services, and proceeds of crime, based on the FIU-IND Annual Report FY 2024-25.

Tax Policy and Regulatory Framework Statistics

Section 2(47A) of the Income Tax Act 1961, introduced through the Finance Act 2022, defines Virtual Digital Assets as any information, code, number, or token generated through cryptographic means, covering cryptocurrencies, NFTs, and other notified digital assets, while explicitly excluding fiat currencies, as codified in the Income Tax Act 1961.
The Finance Act 2022 introduced Section 115BBH imposing a 30% tax (plus 4% cess) on VDA transfer income at a rate equivalent to India’s highest income tax bracket, applicable from April 1, 2022, irrespective of the nature of the income as investment or business income, as codified in the Income Tax Act 1961.
The Crypto-Asset Reporting Framework (CARF) was committed to by India and it is expected to implement the framework and begin information exchanges by 2027, subject to a political commitment being formally finalized, placing India among the OECD Global Forum jurisdictions that have indicated intent to participate in CARF, based on the OECD CARF commitments document updated February 2026.
In March 2026, the CBDT amended Rules 114F, 114G, and 114H of the Income Tax Act to bring crypto assets, Central Bank Digital Currencies, and specified electronic money products within India’s FATCA/CRS reporting framework, aligning India with the international automatic exchange of information movement, based on reporting by The Crypto Times in April 2026.
India’s crypto tax regime for FY 2025-26 retains all provisions introduced in 2022 without modification: 30% flat tax on VDA gains, 1% TDS on transfers, no loss offset, and no deductions except cost of acquisition, as confirmed in the Union Budget 2025 which introduced no changes to the VDA tax rate structure, based on official Ministry of Finance budget documents.
Budget 2026-27 similarly retained the existing 30% tax on crypto gains and 1% TDS framework unchanged, with focus on stronger compliance, mandatory reporting requirements, and enforcement against undisclosed crypto transactions, as confirmed in Ministry of Finance budget communications.
From 1 March 2023, Virtual Digital Asset Service Providers were designated as Reporting Entities under the Prevention of Money Laundering Act 2002 through a Ministry of Finance notification, subjecting them to customer due diligence, suspicious transaction reporting, and record-keeping obligations identical to those imposed on banks and other regulated financial institutions.

Investor Behavior and Offshore Migration Statistics

India’s 30% capital gains tax and 1% TDS on crypto transactions are estimated to have driven approximately 72.7% of India’s crypto trading volume offshore to foreign exchanges operating outside India’s regulatory framework, based on commentary by legal experts in the Indian crypto sector cited in The Crypto Times in April 2026.
Following the FIU-IND blocking of 9 offshore exchanges in January 2024, domestic platform CoinDCX alone saw a 2,000% surge in deposits, reflecting the immediate redirection of trading activity from the blocked platforms to registered domestic exchanges, based on finlaw.in reporting on the post-crackdown exchange migration in 2024.
Research commissioned by FIU-IND found that males represent approximately 69% of the cryptoasset holding population in the UK, and separately, analysis of Indian crypto investor demographics shows that approximately 72% of Indian crypto investors are under 35 years old, with Gen Z (ages 18-25) comprising 37.6% and Millennials (ages 26-35) comprising 37.3%, based on investor demographic data reported from the 2025 Chainalysis Geography of Cryptocurrency Report.
Bitcoin and stablecoins together accounted for 70% of crypto transactions by Indian users based on flow data analyzed in the 2025 Chainalysis Geography of Cryptocurrency Report, highlighting a preference for the two largest asset classes by Indian retail participants.
The CSAO region (Central and Southern Asia and Oceania), led by India, saw DeFi activity account for approximately 56% of transaction volume between July 2022 and June 2023, up from 35.2% in the prior 12-month period, with nearly 70% of that DeFi volume coming in institutional-sized transfers of $1 million or more, based on the Chainalysis 2023 Geography of Cryptocurrency Report.