How crypto is taxed in India
- 30% on every gain, plus 4% health and education cess on the tax (31.2% in all). Your income slab doesn't matter.
- Only the cost of buying counts. No deduction for exchange fees, internet, devices or anything else.
- Losses are ignored. Each sale is taxed on its own. A loss can't be set off or carried forward.
- 1% TDS is deducted when you sell (above the yearly limits) and counts towards the tax.
- Swapping one coin for another, or spending crypto, counts as a sale, so add it here too.
These rules come from section 115BBH (the tax) and section 194S (TDS) of the Income-tax Act 1961, which the Income-tax Act 2025 keeps with new section numbers. Report each sale in Schedule VDA of your income tax return.
Worked example
You bought bitcoin for ₹1,00,000 and sold it for ₹1,50,000: a ₹50,000 gain. You bought ether for ₹80,000 and sold it for ₹60,000: a ₹20,000 loss. Overall you made ₹30,000. But the loss is ignored, so tax is 30% of ₹50,000 = ₹15,000, plus ₹600 cess: ₹15,600, which is 52% of what you actually made. Your exchange deducted 1% of the ₹2,10,000 you sold, ₹2,100, so ₹13,500 is left to pay.
Tips
- Keep your exchange's trade history and TDS statement. Your Form 26AS / AIS shows the TDS deducted under your PAN.
- Pay the tax through advance tax during the year if it's large, to avoid interest.
- Selling shares instead? Capital gains on shares follow different rules. For your salary tax, use the income tax calculator.
Rules checked on 1 October 2026; Budget 2026 made no change to crypto tax. Surcharge for total income over ₹50 lakh isn't included. An estimate, not tax advice; ask a chartered accountant for your own case.