The government of India has made some important reforms in the 2025 budget for the middle class. However, there is not much relief for cryptocurrency investors. Despite the hope, the government has still kept the huge 30% tax rate on crypto income with 1% TDS on transactions.
Key Changes introduced for Crypto Traders in Budget 2o25
No Change in Crypto Taxation
The 30% tax on crypto profits and the 1% TDS on transactions is still the same. No relief is provided.
More Reporting Requirements
It is now a must for banks and crypto exchanges to report past and future transactions involving crypto assets.
Update in Definition of Virtual Digital Assets
The definition of virtual digital assets now includes crypto currency and all the digital assets using crypto-like technology.
Stringent Compliance Rules to be effective from 2026
- A new law (Section 285BAA) requires reporting crypto transactions to tax authorities.
- “Undisclosed income” now includes crypto earnings, similar to gambling or horse racing income.
- The government has expanded the legal definition of digital assets to include those using cryptographic security and blockchain technology.
- These changes will take effect from April 1, 2026.
What does Budget 2025 mean for Crypto Traders in India?
- The government has tightened the rules and regulations to track crypto transactions.
- Crypto futures and options (F&O) are still taxed as business income, not speculative income.
- More reporting obligations mean higher scrutiny and compliance for crypto traders.
- There is still uncertainty regarding future taxation and regulatory changes and one can expect surprises anytime.
Consider Dubai as an Option for Crypto Traders
For Indian crypto traders looking for better regulatory conditions, Dubai offers an attractive alternative. The reasons are the following:
No Crypto Tax
Dubai doesn’t impose taxes on crypto gains.
Crypto-Friendly Regulations
The Dubai Virtual Asset Regulatory Authority provides clear guidelines and support for crypto businesses.
Easier Business Setup
Investors can easily get Dubai company registration to legally operate their crypto business with favorable regulatory environment.
Global Market Access
For Indian crypto investors looking for better regulatory conditions, Dubai offers an attractive alternative:
Conclusion
In conclusion, with India’s strict taxation and increasing reporting requirements, many crypto traders are looking at Dubai as a tax-friendly alternative. Setting up a business in Dubai allows for zero crypto tax, clear regulations, and global investment opportunities. If you are a crypto traders facing high taxes in India or uncertainty regarding regulations, consult our Dubai Company Registration experts. We are here to assist you and clear all your doubts.
Key Highlights of Budget 2025 | Impact on Startups & Businesses
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