As of today, cryptocurrency profits in India will be subject to tax deductions, thanks to crypto legislation suggested in the Union Budget 2022 and ratified by Parliament. This places 'virtual digital assets,' whose classification is still up in the air, in a tax bracket in India. However, as of today, April 1, a 30% tax would be taken from any earnings produced from cryptocurrency trading in India. In addition, India's requirement of one percent TDS on each cryptocurrency transaction is now in effect. Failure to comply can result in serious consequences.
Offenders of India's new crypto rules might face harsh legal consequences, including up to seven years in prison.
“Tax evasion, depending on the specific nature of evasion, may involve imprisonment for as long as six months to seven years and also a fine if the amount is more. Depending on the nature and magnitude of the offense, the fine may go as high as 200 percent,”