Crypto tax in India: Everything you need to know

Key takeaways

Cryptocurrency transactions in India are subject to a 30% flat tax on any profits, plus a 4% cess.

A 1% tax deducted at source (TDS) applies to transactions exceeding a certain threshold.

Crypto losses cannot be offset against other income or carried forward to future years.

Detailed reporting of all crypto transactions is required on the Indian Income Tax e-filing portal.

India’s approach to cryptocurrency taxation has evolved significantly, creating a framework that outlines what you owe — and it’s not as straightforward as you might have hoped. Given India’s specific cryptocurrency tax regulations, it’s crucial to understand the implications, whether you’re trading, holding or earning income from cryptocurrencies.

Here’s a comprehensive guide covering key aspects like crypto tax rates in India, compliance and filing requirements to keep you on the right side of the law.