According to Indian Finance Minister Nirmala Sitharaman in the 2025 federal budget announcement, cryptocurrencies will be included in Section 158B of the Income Tax Act for reporting undisclosed income. The amendment allows for a collective assessment of unreported cryptocurrency gains, giving them the same tax treatment as traditional assets such as currencies, jewelry, and gold bars. According to the new amendment, cryptocurrencies will fall under the definition of virtual digital assets (VDA), which stipulates that: "Cryptoassets are defined in Section 2 (47A) of the Act under the existing definition of virtual digital assets [...] Reporting entities will be required to provide information on cryptoassets under Section 285BAA of the Act." As a sign of concern for cryptocurrency holders, Indian authorities could impose a tax penalty of up to 70% on previously undisclosed cryptocurrency profits. According to the document, the penalty could apply to undisclosed crypto gains for up to 48 months after the relevant tax assessment year. "70 per cent of the total tax and interest payable on additional income disclosed in the updated income tax return [ITR]."