Taxation of Cryptocurrency in India: Evolving Landscape and Regulatory Framework

Publication Date : 03/04/2025


Author(s) :

Sridharan J, Dr. Kiran Kumar M, Mr. Ajitesh Priyadarshi, Mr. Joshua Melvin Raj J.


Volume/Issue :
Volume 03
,
Issue 4
(04 - 2025)



Abstract :

Cryptocurrency is a popular investment vehicle, but cryptocurrency taxation is contentious and uncertain among Indian investors. The government's move to tax cryptocurrencies through a flat tax on cryptocurrency profits has questioned its impact on investment patterns and compliance. The current study investigates the awareness level, perceived difficulties, and the effect of taxation on investment choice among MBA students of various specializations. According to statistical analysis, the research has established considerable differences in the level of awareness, the impact of investment experience on perceptions regarding taxes, and the correlation between tax awareness and investment. Research shows that awareness is largely determined by the subject of study, and students majoring in finance are more tax-aware of taxation policies. But tax problems challenge perceptions similarly for every class of investors, which is in turn an underlying problem of rule clarity and compliance. While tax impacts investment decision-making, it is but one among many with market fluctuations and risk tolerance being examples of significant influences. These conclusions necessitate improved investor education, clear tax regulations, and synchronized law that facilitates cooperation without reducing participation in markets.


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