India's Crypto TDS Crosses ₹1095 Cr; Govt Boosts Enforcement

• India's crypto tax regime has collected over ₹1,000 crore in Tax Deducted at Source (TDS) from Virtual Digital Asset (VDA) trades across three financial years.
• The 1% TDS rule under Section 194S, implemented in July 2022, aims to track and curb tax evasion in the digital asset market.
• TDS collections have shown an upward trend, with Maharashtra and Karnataka leading in contributions for FY2024-25.
• The Finance Ministry is ramping up enforcement against offshore crypto exchanges for non-compliance, conducting surveys that revealed TDS violations and undisclosed income.
• Aggressive search operations have uncovered ₹888.82 crore in undisclosed income from entities involved in virtual digital asset transactions.

Why It Matters: India's crypto tax success signals stricter government oversight for digital assets.