The Indian government will enforce a tax penalty of up to 70% on undisclosed crypto gains as per the new regulations. Cryptocurrencies will now be classified as Virtual Digital Assets (VDAs), and the tax laws will be effective retroactively from February 1, 2025.
Significant amounts of unpaid goods and services taxes related to cryptocurrency activities have been reported. The Indian authorities have tightened tax reporting obligations for crypto traders, signaling a stricter regulatory environment for the market.