Asia/IN/Comparables
India
Ministry of Finance / CBDT / FIU-IND (SEBI case-by-case)
India taxes and monitors virtual digital assets. It does not license their issuance as a market product. Finance Act 2022 put a 30% tax on VDA transfer income and 1% TDS on specified transfers. PMLA registration at FIU-IND is the AML door. There is no SEBI offering circular, no Rule 200, and no Rule 400. A comment that cites ‘India’s crypto framework’ as a disclosure model is citing a tax code.
Tax
30%
TDS
1%
Market Act
None
Similar regulation
The statute book
Primary instruments, with the RCA job each one actually does. Links open the official text.
- In force
Tax characterisation of the asset — not an offering exemption
- In force
AML floor. Not a CASP conduct licence and not Rule 103.
Translation
Rule 100–500 map
| RCA | Peer | Fit | Desk |
|---|---|---|---|
| Rule 100 CIC | VDA under the Income-tax Act | No analogue | A tax definition. SEBI has not classified VDAs as securities as a class. |
| Rule 103 disclosure | CBDT reporting / CARF crypto-asset reporting, not an offering circular | No analogue | July 2026 CBDT guidance is tax information reporting, not investor disclosure. |
| Rule 200 $5M | None | No analogue | No startup exemption. The economic friction is the 30% tax. |
| Rule 300 fundraising | No public-offer regime for VDAs | No analogue | A token sale that is a securities issue still falls under ordinary SEBI/Companies Act analysis, case by case. |
| Rule 400 safe harbor | None | No analogue | No deemed-cessation. |
| Rule 500 preemption | Union tax + PMLA, state overlay limited | No analogue | Different federation, different machine. |
Analysis
What the file is
India’s live VDA file is fiscal and AML. Section 115BBH taxes income from transfer of a VDA at a flat 30% with almost no deductions and no set-off of losses. Section 194S withholds 1% on specified transfers. FIU-IND registration is mandatory for in-scope VASPs; offshore platforms without it have been restricted. RBI does not treat private crypto as currency. The Parliamentary Standing Committee has asked whether a market statute is needed. As of the RCA comment window, it does not exist.
Research
The record
- Legal tender: no. Holding and trading: not generally prohibited. That combination is a policy choice, not a safe harbor.
- e-Rupee is a CBDC. It is outside the VDA definition. Do not mix the two in a comment.
- SEBI’s case-by-case securities analysis still exists for anything that is an investment scheme. VDA tax status does not immunise a Howey-equivalent offer aimed at Indian investors.
Ideation
What to file
- India is the exhibit for ‘a large market can tax crypto without writing Rule 200.’ If that is your point, say whether you want the Commission to stay in its lane. If you want a market statute, India is the hole, not the model.
- Cross-border: a Rule 300 general solicitation that reaches India is a tax-plus-PMLA problem for the Indian counterparty, not an SEC qualification problem. Geo-block exhibits still help.
Analysis
What the file is
India’s live VDA file is fiscal and AML. Section 115BBH taxes income from transfer of a VDA at a flat 30% with almost no deductions and no set-off of losses. Section 194S withholds 1% on specified transfers. FIU-IND registration is mandatory for in-scope VASPs; offshore platforms without it have been restricted. RBI does not treat private crypto as currency. The Parliamentary Standing Committee has asked whether a market statute is needed. As of the RCA comment window, it does not exist.
Primary sources on file
Income-tax Act — Virtual Digital Assets (ss. 2(47A), 115BBH, 194S)
Income Tax Department, Government of India/1 Apr 2022/RCA review 10 Sept 2026
Primary regulatory
FIU-IND — VASP registration under the Prevention of Money Laundering Act
Financial Intelligence Unit — India/1 Mar 2023/RCA review 10 Sept 2026
Primary regulatory
RCA publishes source-linked intelligence for professionals. Nothing here is a token-buying call, a legal opinion, or an “approved / safe / regulated” badge. Every material claim is dated. Incomplete files stay incomplete.