How is crypto taxed in India?

⚡ Short answerProfits from crypto and other Virtual Digital Assets (VDAs) are taxed at a flat 30% under Section 115BBH, plus surcharge and cess, with no deduction allowed except the cost of acquisition. You cannot set off crypto losses against any other income or carry them forward. A 1% TDS under Section 194S applies on transfers above the threshold.

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The 30% flat tax

Every gain on selling, swapping or spending a VDA is taxed at 30% regardless of your slab. You can't deduct expenses (like exchange fees) other than the purchase cost, and losses from one coin can't offset gains from another.

The 1% TDS and reporting

Buyers/exchanges deduct 1% TDS under Section 194S on transfers above ₹10,000 (₹50,000 for specified persons). Report all VDA income in the Schedule VDA of your ITR — non-disclosure is easily caught via AIS and exchange reporting.

Related questions

Can I set off crypto losses against crypto gains?

No. Under Section 115BBH, a loss on one VDA cannot be set off against a gain on another VDA, nor against any other income, nor carried forward. Each gain is taxed at 30% on its own.

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General information for AY 2026-27, not professional advice. Rules change with each Finance Act / notification and depend on your facts — verify with a licensed CA or advocate before acting.