Rapid Fire
Crypto Transactions Surge in India
- 09 Dec 2025
- 2 min read
Cryptocurrency transactions in India crossed Rs 51,180 crore in 2024–25, marking a 41% rise from the previous year. This is based on Rs 511 crore collected as 1% Tax Deducted at Source (TDS), as reported by the Finance Ministry in the Rajya Sabha.
- The Finance Act, 2022 introduced a 1% TDS on all transfers of Virtual Digital Assets (VDAs) under the Income Tax Act, 1961, and this provision has been retained in the Income Tax Act, 2025.
- Cryptocurrency: It is a type of digital currency that enables direct, peer-to-peer online payments without the need for a central authority.
- It functions as a digital medium of exchange built on a public digital ledger known as blockchain, where transactions are verified using cryptographic techniques.
- The first decentralised cryptocurrency was Bitcoin, introduced in 2009.
- Cryptocurrency Trading:
- Mining: New coins are generated when miners solve complex mathematical problems and add blocks to the blockchain.
- Buying & storing: Purchased via exchanges and stored in hot (online) or cold (offline) wallets.
- Payments: Enables fast, low-cost cross-border transactions.
- Investing: Highly volatile asset class with derivatives like futures and options.
- Conversion: Easily converted to fiat currency, but subject to taxation.
| Read more: Cryptocurrency and Blockchain |
