Complete crypto tax guide India 2026: 30% flat tax on all crypto profits (Section 115BBH), 1% TDS on transactions above ₹50,000, Schedule VDA ITR filing, and free crypto tax calculator.
India taxes all cryptocurrency and virtual digital asset (VDA) profits at a flat 30% rate under Section 115BBH of the Income Tax Act, effective from April 1, 2022. A 1% TDS applies to transactions above ₹50,000/year under Section 194S. Understanding and complying with these rules is mandatory for every Indian crypto investor.
Bought 1 BTC at ₹30 lakh, sold at ₹50 lakh. Profit = ₹20 lakh. Tax = 30% of ₹20 lakh = ₹6 lakh. Plus 4% cess = ₹6.24 lakh total tax payable.
A flat 30% tax applies to all crypto profits in India under Section 115BBH, plus 4% Health & Education Cess — making the effective rate 31.2%. This applies regardless of your income slab. Example: ₹1 lakh profit = ₹31,200 tax. Use the free CryptoSyntix Tax Calculator at cryptosyntix.com/tax.
Under Section 194S, exchanges must deduct 1% TDS on crypto sales/transfers exceeding ₹50,000/year for individuals, and ₹10,000/year for specified persons (those required to audit under Section 44AB). This TDS appears in Form 26AS and can be adjusted when you file your ITR.
No. Under Section 115BBH, crypto losses cannot be set off against ANY other income — not against stock profits, salary, rental income, or even other crypto profits. This is one of the harshest tax provisions for crypto in India.
Yes. In India, every crypto-to-crypto exchange is treated as a taxable event. When you convert Bitcoin to Ethereum, you must calculate the INR fair market value at the time of conversion and pay 30% tax on any gain from your acquisition price to the conversion price.
Use ITR-2 if you are a salaried individual with crypto income as capital gains. Use ITR-3 if you trade crypto as a business. Report all crypto transactions under Schedule VDA (Virtual Digital Assets). Exchanges provide transaction history downloadable for ITR purposes.
Staking rewards are taxed as income in the year they are received, at your applicable income slab rate — NOT at 30%. The 30% flat rate applies only when you subsequently sell or transfer the staked tokens for a profit.