Indian authorities say that enforcing cryptocurrency tax is difficult, and the 30% profit uniform tax is hard to implement

Indian financial authorities have reiterated their concerns about cryptocurrency trading, warning that it could complicate tax enforcement. The Indian tax department stated that offshore trading platforms, private wallets, and DeFi tools pose risks that could make tracking cryptocurrency income "almost impossible." Cryptocurrencies enable "anonymous, borderless, and nearly instantaneous" value transfers, allowing individuals to move funds without regulated financial intermediaries.

India currently imposes a flat tax of 30% on profits from all cryptocurrency activities, and additionally, all transfers (regardless of profitability) are subject to a 1% withholding tax. While India officially allows cryptocurrency trading under a high tax regime and has approved the return of major U.S. exchange Coinbase in 2025, the Indian government's overall stance on cryptocurrencies remains cautious and complex.