Crypto tax in India explained
India taxes gains on crypto, which the law calls virtual digital assets (VDAs), at a flat 30% plus surcharge and cess. A 1% TDS applies to many sales. Losses cannot be set off against other income. Here is how it works, with examples.
The main rules
| Rule | What it means |
|---|---|
| 30% tax (Section 115BBH) | Income from transferring a VDA is taxed at a flat 30%, plus surcharge and 4% health and education cess. The holding period does not matter. |
| Only cost is deductible | You can deduct only what you paid for the asset. Fees, internet or other expenses are not deductible. |
| No loss set-off | A loss on one coin cannot reduce the gain on another coin or any other income, and it cannot be carried forward. |
| 1% TDS (Section 194S) | 1% of the sale value is deducted at source when you sell or swap, above yearly thresholds of ₹50,000 for specified persons and ₹10,000 for others. |
| Swaps count | Swapping one coin for another is a transfer, so it can trigger TDS and tax. |
| Gifts | Crypto received as a gift can be taxable for the receiver above the gift thresholds. |
| Reporting | Report transactions in Schedule VDA of ITR-2 or ITR-3, and match TDS with Form 26AS. |
Worked example: a gain
You bought 0.01 BTC for ₹70,000 and later sold it for ₹90,000.
- Gain: ₹90,000 − ₹70,000 = ₹20,000.
- Tax at 30%: ₹6,000, plus 4% cess (₹240) = ₹6,240, before any surcharge.
- TDS on the sale: 1% of ₹90,000 = ₹900, deducted when you sell (if the threshold applies). You claim it as a credit against the ₹6,240.
Worked example: a loss on another coin
In the same year you lost ₹15,000 on ETH. That loss cannot reduce the ₹20,000 BTC gain. You still pay tax on the full ₹20,000.
What 0.01 BTC is worth today
At the current rate (saved rates from 27 Sep 2026), 0.01 BTC is ₹81,361.03. Tax is always worked out on the actual rupee amounts at the time you bought and sold, so keep records of each trade.
Budget 2026
Budget 2026 did not change the 30% rate or the 1% TDS. It added penalties for reporting entities, such as exchanges, that fail to file required crypto transaction statements or file inaccurate ones. That makes it more likely your exchange data will be matched against your return.
Records to keep
- Date, coin, quantity and rupee value of every buy, sell and swap.
- Exchange statements and TDS certificates.
- Wallet addresses for transfers between your own wallets.
Check the current value of your holdings with the BTC to INR, ETH to INR or USDT to INR converters.
Frequently asked questions
Is crypto taxed at 30% in India?
Yes. Income from transferring virtual digital assets is taxed at a flat 30% plus surcharge and 4% cess, under Section 115BBH.
Can I set off crypto losses in India?
No. Losses on one crypto asset cannot be set off against gains on another or against other income, and they cannot be carried forward.
Is TDS an extra tax?
No. The 1% TDS is an advance payment that you claim as a credit against your final tax.
Which ITR form do I use for crypto?
Usually ITR-2 or ITR-3, with transactions reported in Schedule VDA. Ask a chartered accountant for your case.