Taxation of Cryptocurrency Transactions in India: Policy Framework and Compliance Challenges

I. INTRODUCTION Cryptocurrency has rapidly transformed from a niche technological curiosity to a mainstream financial asset with millions of participants across the globe, and India is no exception to this trend. By 2022, India was estimated to have one of the largest populations of cryptocurrency holders in the world, with figures ranging from 10 to 20 crore users according to various industry reports. This explosive growth brought an urgent question to the forefront of Indian tax policy: how should gains and income arising from such digital assets be taxed, and how should compliance be ensured in a space that has historically operated in a regulatory grey zone?