Stay compliant with India’s 30% crypto tax rules through expert advisory and accurate reporting.
Every crypto gain in India is taxed at a flat 30%, no matter how long you held it or how small the trade was. Section 115BBH taxes income from transferring any Virtual Digital Asset, cryptocurrency, NFTs, tokens, at that flat rate plus surcharge and 4% cess. There’s no short-term or long-term distinction and no indexation; a trade held five minutes and one held five years are taxed identically. The only deduction allowed is your cost of acquisition, exchange fees, internet costs, and hardware expenses don’t count.
Losses are where this regime gets genuinely strict: a loss on one coin cannot offset a gain on another, cannot offset any other income, and cannot be carried forward to a future year. A trader with a ₹1 lakh gain on Bitcoin and a ₹1 lakh loss on Ethereum in the same year still pays 30% on the full gain, with no relief for the loss at all. That rule, more than the rate itself, is what catches most traders off guard.
A 1% TDS applies on the transaction value, not the profit, when you transfer a VDA, once the transaction crosses the prescribed annual threshold. On exchanges, this is usually deducted automatically and shows up in Form 26AS. For peer-to-peer transfers, the buyer is responsible for deducting and depositing it, and this is the step businesses and frequent traders most often miss.
Simply holding an asset, or moving it between your own wallets, doesn’t trigger tax on its own.
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