India Reassesses Cryptocurrency Stance Amid Global Shifts

According to Odaily, India's Economic Affairs Minister Ajay Seth has indicated that the country is reevaluating its position on cryptocurrencies due to changing attitudes in other nations. This reassessment follows U.S. President Donald Trump's announcement of crypto-friendly policies, which may delay the release of India's cryptocurrency discussion paper originally scheduled for September 2024. Seth noted that multiple jurisdictions have altered their views on the use and acceptance of crypto assets, prompting India to reconsider its approach. He emphasized that India's stance cannot be unilateral given the borderless nature of these assets, though he did not specifically mention the United States. In related news, India's Finance Minister Nirmala Sitharaman announced in the 2025 federal budget that cryptocurrencies will be included under Section 158B of the Income Tax Act for reporting undisclosed income. This amendment allows for collective assessment of unreported crypto gains, aligning them with traditional assets like currency, jewelry, and bullion for tax purposes. Under the new amendment, cryptocurrencies will be classified as virtual digital assets (VDA). Signaling concerns for cryptocurrency holders, Indian authorities may impose a tax penalty of up to 70% on previously undisclosed crypto profits. This penalty could apply to gains not disclosed for up to 48 months after the relevant tax assessment year. The document states that the updated income tax return (ITR) should disclose additional income, with a total tax and interest liability of 70%.