Centre Issues New Crypto Guidance Under Income Tax Act

The Indian government has issued new guidance aimed at tightening the regulatory framework for cryptocurrency transactions under the Income Tax Act. The guidance clarifies how virtual digital assets are treated for tax purposes and outlines compliance expectations for taxpayers. Industry participants welcomed the move, describing it as an important milestone that brings greater clarity to the sector. However, the notice does not introduce any new taxes on crypto holdings, nor does it impose direct regulatory controls on digital asset exchanges or wallets.