Blockchain & Crypto Legal Education
Comprehensive educational resources about Indian digital asset regulations, smart contracts, blockchain ecosystem fundamentals, and free downloadable tools.
Regulatory content last reviewed October 2026
Current Legal Framework for Digital Assets in India
Understanding the regulatory landscape for virtual digital assets (VDAs) in India
Entities carrying on VDA activities must register with FIU-IND as reporting entities under the PMLA, with customer due diligence, transaction monitoring, sanctions screening, travel rule and suspicious transaction reporting obligations. FIU-IND's AML/CFT guidelines for VDA service providers were updated on 8 January 2026.
FIU-IND AML/CFT Guidelines for VDA (8 Jan 2026)The Income-tax Act, 2025, applicable from 1 April 2026, carries the crypto-asset reporting requirements (Rule 243 read with section 509) alongside disclosure of VDA income in Schedule VDA of the return.
Income Tax Department – Schedule VDAIncome from the transfer of a virtual digital asset is taxed at a flat 30% plus surcharge and cess, with no deduction for expenses and no indexation benefit. The charge continues under the Income-tax Act, 2025.
Income Tax Department – Taxation of VDATax is deductible at 1% on the consideration for transferring a VDA — where consideration exceeds ₹50,000 in a financial year for specified persons, and ₹10,000 in other cases. Confirm the current threshold and form before relying on it.
Income Tax Department – TDS on VDA transfersLosses from the transfer of a VDA cannot be set off against other income, or against gains from other transfers. In the income tax return, a loss from VDA transfer is reported as nil.
India regulates virtual digital assets through tax law, the PMLA and FIU-IND directions, and existing sectoral laws rather than one comprehensive crypto Act. Treat any statement of a single licensing regime with caution.
Last reviewed: October 2026
India's framework for digital assets is evolving. It is drawn from tax law, the Prevention of Money Laundering Act and FIU-IND directions, and existing sectoral regulation, rather than a single dedicated statute. Rules and official guidance may change after the review date above.
This is general information, not legal, tax or compliance advice. Verify against the current official text and consult a qualified professional for your specific facts.