Crypto tax in India
Crypto tax in India is simple to state and harsh in practice: gains from selling or swapping virtual digital assets (VDAs) are taxed at a flat 30% plus 4% cess, no expenses are deductible except the purchase cost, and losses cannot be set off against any other income or carried forward. On top of that, a 1% TDS is deducted on most transfers. This guide explains what counts as a taxable event, how to calculate the tax, how TDS works, where to report crypto in your ITR and what changed with the new Income-tax Act from April 2026. Use the calculator to estimate the gain on a trade.
General information, not tax advice. Rules are as of October 2026. For your own return, check the Income Tax Department guidance or a chartered accountant.
What is a taxable event
- Selling crypto for rupees at a profit.
- Swapping one coin for another, for example USDT for BTC: the first coin is treated as sold at market value.
- Paying for goods or services with crypto.
- Receiving crypto as a gift above ₹50,000 in a year from someone who is not a relative.
Buying crypto with rupees and simply holding it is not taxed. Moving coins between your own wallets is not a sale either, though exchanges may still record it.
The 30% rule
| Rule | What it means |
|---|---|
| Flat rate | 30% on VDA gains, plus 4% health and education cess and any surcharge |
| Deductions | Only the cost of acquisition; no fees, internet or hardware costs |
| Losses | Cannot be set off against other income or other VDA gains, and cannot be carried forward |
| Basic exemption | Does not reduce VDA tax; it applies even if your total income is low |
These rules came in from 1 April 2022. The new Income-tax Act, 2025, which applies from 1 April 2026, keeps the same approach to VDAs with renumbered sections.
Crypto gain calculator
Enter the amount invested, buy and sell price per coin and the exchange fee. The profit shown is your gain before tax; multiply it by roughly 31.2% to estimate tax with cess. A standalone version is on the crypto profit calculator page.
Coins bought
…
Value when sold
…
Profit or loss
…
Return (ROI)
…
Break-even sell price
…
Change any field to run your own scenario.
Example: you buy BTC for ₹1,00,000 and sell for ₹1,50,000. The gain is ₹50,000 and tax with cess is about ₹15,600. If another coin lost ₹20,000, that loss does not reduce the ₹50,000.
1% TDS on transfers
Since 1 July 2022, the buyer or the exchange deducts 1% TDS on the sale value of a VDA once yearly thresholds are crossed: ₹50,000 for specified persons such as most salaried individuals, ₹10,000 for others. On Indian exchanges this is automatic and appears in your Form 26AS and AIS. TDS is not an extra tax: you claim it as credit against your final liability when filing. P2P sellers often forget that the buyer should deduct TDS, which causes mismatches later.
Reporting crypto in your ITR
- Download trade history from every exchange and wallet you used during the financial year (April to March).
- Calculate the gain on each transfer: sale value minus cost of that specific coin.
- Report each transfer in Schedule VDA of ITR-2 (or ITR-3 if you treat it as business income).
- Claim the TDS shown in Form 26AS.
- File by the due date, usually 31 July for individuals without audit.
Exchanges registered with FIU-IND report user data, and the department matches it with returns. Whether crypto is legal at all: is crypto legal in India.
Mining, airdrops, staking and gifts
- Mining: when mined coins are sold, the full sale value is generally taxed at 30%, because the cost of acquisition is treated as nil.
- Airdrops and rewards: usually taxed as income when received, and again at 30% on gains when sold.
- Gifts: taxable for the receiver above ₹50,000 a year from non-relatives.
Converting crypto back to rupees: USDT to INR.
Small rewards from a game
TotalHash is a free mining game in Telegram. Tasks and short ads pay small amounts of USD₮ and GRAM to your own TON wallet. These are small sums, not income, but the same VDA rules apply if you sell them.
Free game in Telegram.
Open TotalHashQuick answers
What is the crypto tax rate in India?
A flat 30% on gains from virtual digital assets, plus 4% cess and any surcharge.
Can I set off crypto losses in India?
No. VDA losses cannot be set off against other income or other VDA gains, and cannot be carried forward.
What is 1% TDS on crypto?
A deduction on the sale value of crypto transfers above yearly thresholds; you claim it as credit when filing your return.
Where do I report crypto in my ITR?
In Schedule VDA of ITR-2, or ITR-3 if you treat crypto trading as business income.