Tier-2 and peripheral jurisdictions including North 24 Parganas (West Bengal), Medchal-Alkajgiri (Telangana) and Kokrajhar are among top five districts in VDA (Virtual Digital Asset or cryptocurrency) transaction value consideration, government data has shown. These districts recorded higher value for tax deduction while number of unique deductees are higher in major financial hubs including Bengaluru Urban, Mumbai Suburban and Chennai.
“There is a possibility of using dormant bank accounts and PAN of individuals in districts of West Bengal, Telangana or Assam for VDA transaction. However, with effective inter-agency coordination and strong use of technology by the Income Tax Department, transactions were tracked and further action done,” a government official said. North 24 Parganas also displayed year-on-year growth. Districts such as Coimbatore, Medchal−Malkajgiri, Kakinada, Lucknow, Jaipur and Mumbai suburban recorded highest transaction value in FY25, followed by moderation in FY26, the official added.
However, among the top 10 districts for population of unique deductees, Bengaluru Urban continue to occupy top position during FY 23 to FY 26, indicating a high concentration of technology linked digital assets activity.
Giving State wise details, the official said that Karnataka led the list of states with number of unique deductees followed by Uttar Pradesh and Maharashtra. Anddhra Pradesh, Telangana and Rajasthan continue to see growth while Tamil Nadu, West Bengal, Delhi and Assam showed moderate decline after sustained expansion. “Uttar Pradesh and Maharashtra consistently recorded largest deductee population, followed by Rajasthan and West Bengal in FY26,” the official said.
Another government official said that total number of deductees rose to over 32.36 lakhs in FY26 from over 16.50 lakhs. During this period, the transaction consideration on which TDS was deducted rose from around ₹22,000 crore to over ₹35,000 crore, while TDS collection increased from ₹220 crore to around ₹350 crore. Tax collected from VDA income in FY25 stood at over ₹585 crore, while data for FY26 is not yet available as returns are currently being compiled.
Income arising from transfer of VDA attracts uniform 30 per cent (plus applicable cess and surcharge) income tax. Also, transfer of VDA attracts TDS at 1 per cent but not for individual with transaction value of less than Rs 50000 or for others with transaction value of Rs 10000.
Published on November 9, 2026
