The crypto sector is expressing their opinions regarding the new treatment that cryptocurrency is set to receive in the wake of India’s new tax rules. Many industry participants have welcomed the new tax bill, but many have also expressed uncertainty about how it will affect them.

India’s income tax law is all set to redefine the Indian crypto space. The new income tax law from India, which contains provisions for digital assets, may clarify the definition of crypto assets and bring much-needed legislative certainty.

Amid the new laws, the industry is now voicing out how they feel about the new treatment crypto is about to receive.

India’s New Tax Bill: What Does It Say About Crypto?

By classifying cryptocurrencies and other digital assets as “virtual assets,” the measure may create taxation standards for them, paving the way for uniform treatment throughout the sector.

With distinct rates for short-term and long-term capital gains, the proposed tax structure most likely entails taxing profits from cryptocurrency assets as income.

This might guarantee that cryptocurrency-related businesses, exchanges, and investors are aware of their tax responsibilities.

Furthermore, the bill might cover topics like compliance procedures and reporting requirements, promoting openness and legal compliance. By offering a statutory definition, India might encourage more institutional use and discourage illegal activity in the cryptocurrency field.

Anish Jain, Founder, W Chain says “The cryptocurrency market is experiencing a dynamic phase, marked by volatility and growth opportunities. India’s Income Tax Bill 2025 has clarified the treatment of crypto as ‘Undisclosed Income.’ This move has sparked discussions, with investors carefully assessing the implications for tax reporting and compliance.”

He adds, “While some worry about potential categorization as ‘undisclosed income,’ the bill also brings clarity by defining VDAs under Section 2(47A) of the Income Tax Act. The crypto market anticipates increased transparency and formalization of crypto investments, with the dedicated Schedule VDA in the Income Tax Return streamlining the reporting process.”