Crypto Tax India 2026 — Complete Guide
Quick Answer: India taxes cryptocurrency profits at a flat 30% rate under Section 115BBH of the Income Tax Act, plus 1% TDS on transactions above ₹50,000/year. Losses cannot be offset against other income.
Crypto Tax Rates in India (2026)
| Tax | Rate | Section |
|---|---|---|
| Profit Tax (Capital Gains) | 30% flat | 115BBH |
| TDS on Sale | 1% | 194S |
| Loss Set-off | Not allowed | — |
| Carry Forward of Losses | Not allowed | — |
| Gifting Crypto | Taxed at 30% | 115BBH |
Key Rule: The 30% tax applies regardless of your income slab. Even if you are in the 0% tax bracket, crypto profits are taxed at 30%.
TDS Rules on Crypto Transactions
- 1% TDS deducted on transactions above ₹50,000/year (general users)
- 1% TDS on transactions above ₹10,000/year for specified persons (business/professionals)
- TDS is deducted by the exchange at point of sale
- You can claim TDS credit when filing ITR
How to File ITR for Crypto in India
- Download your transaction history from your crypto exchange
- Calculate profit/loss for each transaction
- Use ITR-2 (salaried) or ITR-3 (business income)
- Report under Schedule VDA (Virtual Digital Assets)
- Pay advance tax if liability > ₹10,000
- File by July 31 for non-audit cases
Frequently Asked Questions
30% flat tax on all crypto profits + 1% TDS on transactions above ₹50,000/year. No loss set-off allowed.
Yes. Crypto is legal as a Virtual Digital Asset (VDA). It is taxed under Section 115BBH of the Income Tax Act.
No. Crypto losses cannot be set off against any other income including other crypto profits.
1% TDS is deducted on crypto sales above ₹50,000/year. You can adjust this against your final tax when filing ITR.
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