Crypto tax in India
In India the supervising authority is the Income Tax Department and FIU-IND. What follows explains which event creates a tax liability, what you have to be able to show, and the rules people most often get wrong.
What triggers tax
Transfer of a virtual digital asset - selling, swapping or spending it.
What you must record
Date, quantity, cost of acquisition, sale value and the TDS already deducted.
The rules people get wrong
- Gains on virtual digital assets are taxed at a flat 30% plus applicable cess, and losses cannot be set off against other income or carried forward.
- A 1% TDS applies to transfers; exchanges usually deduct it at source and it is credited against your final liability.
- Crypto-to-crypto swaps are transfers too - each one is a taxable event even though no rupees moved.
Getting it right
Keep a single record from your very first purchase. Reconstructing an acquisition cost years later, across platforms that may no longer exist, is the failure that costs people money - not the tax rate itself.
FAQ
Do I owe tax if I never converted to cash?
Often yes. In many jurisdictions swapping one crypto for another, or paying with it, is itself a taxable disposal even though no ordinary currency moved.
What if I only made a loss?
You usually still have to declare. A declared loss can often reduce a future liability, but only if you recorded and reported it.
Does self-custody remove the obligation?
No. Holding your own keys changes who controls the asset, not who owes the tax.
The exchange is abroad - does it report for me?
Do not assume so. Cross-border reporting frameworks are expanding, but the obligation to declare is yours regardless.
This page is educational and is not tax advice. Rates and thresholds change; confirm the current figures with the Income Tax Department and FIU-IND or a qualified adviser before you file.
What to read next
Three steps that make sense in this order.
- Academy — the basics, from zero
- Calculator — see what your money buys
- Glossary — for any term you have not met before
- All pages — the full index