Every few months, a headline announces that India's crypto bill is "coming soon." It rarely is. As of now, no standalone crypto law has been passed by Parliament. What exists is a consultation process, and a set of tax rules that apply whether or not a bill ever arrives. If you hold or trade virtual digital assets, the second part matters far more to your bank account than the first.
Where the bill actually stands right now
The Department of Economic Affairs floated a discussion paper on virtual digital assets to gather stakeholder views on how crypto should be classified and regulated. That is a pre-legislative step. A discussion paper is not a bill, it has no legal force, and it creates no offences, deadlines, or reporting duties. You cannot be penalised for failing to comply with a document that has not become law.
Confusing a consultation paper with a statute is the single most common error Indian crypto holders make when they panic-read news. If a story quotes a "draft," check whether that draft is a government paper seeking comments or an actual bill listed for introduction. The two are not close cousins.
Why the timeline keeps slipping
Crypto regulation touches the RBI, SEBI, the Finance Ministry, and the tax department, and these bodies do not see the framework the same way. Add global rules that are still settling, and you get the stop-start rhythm you see in coverage. Slippage is the norm here, not the exception.
What you owe today, bill or no bill
Tax law does not wait for Parliament. Section 115BBH taxes gains from virtual digital assets at a flat 30%, with no deduction for expenses other than the cost of acquisition. Section 194S imposes 1% TDS on transfers, subject to thresholds and conditions. These provisions are live and enforced.
The 30% rule in plain terms
No set-off of losses against other income. No slab benefit. One rate, applied to the gain. If you sold at a profit, that profit is taxed at 30% regardless of which bracket your salary falls into.
TDS is separate from your final tax
People conflate the two constantly. The 1% deducted at source is a withholding mechanism. It gets credited against your total liability when you file, but it is not your final tax bill.
| Item | What it does |
|---|---|
| 30% tax (115BBH) | Applies to gains at the end of the year |
| 1% TDS (194S) | Deducted per transfer, credited when you file |
| Schedule VDA | Where you report each transaction in your ITR |
A scenario that trips people up
Say you buy ₹1,00,000 of a token in April and sell it in September for ₹1,20,000. Your gain is ₹20,000. At 30%, that is ₹6,000 in tax. Separately, 1% TDS on the ₹1,20,000 sale works out to ₹1,200, which the exchange withholds at the time of transfer. When you file, that ₹1,200 is adjusted against your ₹6,000 liability, so you pay the remaining ₹4,800. Miss the TDS credit because you never downloaded the transaction statement, and you have effectively overpaid by ₹1,200. Plenty of filers do exactly that.
Where CoinDCX fits in
If you trade on CoinDCX, your TDS deductions and transaction history show up in your account records. Pull those before you sit down to file. Reconciliation starts there, not with a guess.
Records you should be keeping
- Date and value of every buy and sell
- TDS deducted, with the exchange statement to back it
- Cost of acquisition for each holding
- Wallet-to-wallet transfers, if you moved assets off an exchange
That fourth one catches people. Moving coins between your own wallets is not a sale, but it still needs a paper trail if you are ever asked to explain a gap.
What to watch before assuming a bill has passed
Headlines will keep saying "crypto bill" whether or not a bill exists. Before you change anything about how you report or hold, check whether the source is describing a consultation paper, a cabinet note, or an actual tabled bill. Those are three very different things.
Signals that something real is happening
A bill gets listed on the legislative agenda. A draft text becomes public. Committees invite comments on a specific clause. Until you see one of those, you are reading tea leaves.
Don't restructure your holdings on rumours
Selling in a panic because of a headline you half-read can trigger the very 30% tax you were trying to avoid. Patience is cheaper than a rushed exit.
Frequently asked questions
Has India passed a crypto bill in 2025?
No standalone crypto law has been enacted as of now. The government has been working through a consultation process, including a discussion paper from the Department of Economic Affairs. Until a bill is introduced and passed by Parliament, crypto activity is governed by existing tax provisions and whatever regulatory guidance already exists. Always verify the latest status through official government sources rather than news summaries.
Does the 1% TDS apply if a bill is pending?
Yes. TDS under Section 194S is part of current tax law and applies independently of any future legislation. It is deducted on qualifying transfers subject to the thresholds and conditions set out in the rules. A pending bill does not suspend your existing obligations, and it does not create new ones either.
Will a new law change how I report my crypto gains?
It could, but nobody can say how until a bill is actually drafted and passed. Any change would come with its own effective date and transitional rules. For now, report under the current framework: 30% on gains, TDS credits claimed, and every transaction reflected in Schedule VDA of your return.
Should I stop trading until the rules are clear?
That is a personal call, not a tax one. What matters from a compliance angle is that you keep accurate records regardless of what you decide. If you do trade, reconcile your TDS and gains before the filing deadline. If you do not, you still need to report any disposals you made earlier in the year.
Download your CoinDCX transaction statement today and check that every rupee of TDS deducted actually shows up as a credit in your return.