Crypto Taxation in India: What You Need to Know About Digital Asset Taxes

When you trade crypto taxation, the legal requirement to report and pay taxes on profits from buying, selling, or trading cryptocurrencies and other digital assets. Also known as digital asset taxation, it’s no longer optional in India — the government treats crypto like any other asset, and failing to report it can lead to penalties or audits. Whether you bought Bitcoin in 2021, swapped Ethereum for Solana last month, or earned rewards from staking, you owe taxes on those gains.

It’s not just about selling. cryptocurrency taxes India, the specific rules and rates applied to crypto transactions under Indian income tax law include a flat 30% tax on profits, no loss carryforwards, and a 1% TDS on every trade above ₹50,000. That means even if you break even overall, you still pay tax on each individual sale. And if you received crypto as payment for work, gifted it, or mined it — those are also taxable events. The Income Tax Department now has tools to track wallet addresses and exchange data, so ignoring this isn’t an option.

crypto income tax, the tax owed on profits made from crypto trading, staking, or airdrops under India’s Income Tax Act is calculated differently than stocks. You can’t offset losses from Bitcoin against gains in NFTs. Each asset is tracked separately. And if you’re using foreign exchanges like Binance or Kraken, you still need to report those transactions — the law doesn’t care where the exchange is based. Many people think they’re safe if they don’t cash out to rupees, but that’s a myth. Converting crypto to another crypto is still a taxable sale.

What makes this confusing is that the rules keep shifting. In 2022, the government introduced the 30% tax and TDS. In 2024, they started requiring crypto exchanges to report user data. By 2025, the tax department is using AI to match wallet addresses with PAN numbers. If you’re holding crypto, you’re already in the system. The key is not to avoid taxes — it’s to manage them right. Keep records of every transaction: date, amount, value in INR at time of trade, and whether it was a buy, sell, or transfer. Use a simple spreadsheet or free crypto tax tools to track it. You don’t need an accountant unless you’re trading heavily.

And don’t confuse blockchain tax rules, the legal framework governing how blockchain-based assets are taxed under national financial regulations with general investment rules. You can’t claim deductions for gas fees, exchange fees, or wallet costs. No HRA-style exemptions. No 80C deductions. The tax is simple: 30% on gains, plus TDS, no exceptions. This isn’t about discouraging crypto — it’s about bringing transparency. The same way you report rental income or capital gains from gold, you report crypto.

What you’ll find in the posts below aren’t generic guides or theory. These are real, practical stories from people who’ve been through it — from a trader in Pune who got hit with a notice for unreported trades, to a freelancer in Hyderabad who pays taxes on crypto payments and keeps receipts, to an investor in Bangalore who learned the hard way that swapping tokens isn’t tax-free. You’ll see exactly what’s required, what’s optional, and what gets you in trouble. No fluff. No jargon. Just what you need to stay compliant without overpaying.