India’s government has announced a major overhaul of its income tax legislation. The new version of the Income Tax Act, set to be introduced in Parliament on August 11th, will replace the existing 1961 law and impact crypto regulations within the country. This shift has ignited hopes for relief from current cryptocurrency taxation regulations. While the government’s introduction of the income tax bill is generating buzz across the digital asset world, it comes at a time when traders are facing a complex tax landscape. Currently, gains from cryptocurrencies like Bitcoin and Ethereum are subject to a 30% tax rate in addition to a 1% Tax Deduction on Transactions (TDS) exceeding ₹10,000. Some market participants believe the current regulations create hurdles for active trading and incentivize them to seek alternative international options. The government has also cracked down on unreported crypto income through over 44,000 notices issued to individuals who did not report their digital asset transactions, resulting in the discovery of ₹630 crore worth of undisclosed crypto assets. The new bill has prompted a renewed focus on Crypto tax regulations as India is still navigating its ambiguous stance on cryptocurrency trading. Trading remains unregulated and exchanges are required to register with the Financial Intelligence Unit (FIU-IND). This legal gray area leaves many investors feeling uneasy, although the finance ministry shows no immediate indication of changing current rates. However, there’s growing anticipation for a new framework in the form of the COINS Act 2025, which aims to provide the sector with clear guidelines and regulations. This potential legislation could pave the way for greater transparency and security within the crypto market. India currently holds a significant position in the global crypto economy, boasting a large number of Bitcoins held by individual investors. However, high tax rates and a lack of regulation continue to impede the entry of larger players into the market. The outcome of this new bill will likely have a major impact on this landscape. The fate of India’s evolving cryptocurrency regulations hangs in the balance as traders wait for clarity on the future.