India tax
Crypto tax in India: the 30% rule
How India taxes crypto gains: a flat 30% plus 4% cess, no deductions except cost, and no loss set-off. With worked examples.
Updated 18 Oct 2026 · 5 min read
The basic rule
India taxes gains from virtual digital assets (VDAs), which include cryptocurrencies, at a flat 30%, plus a 4% health and education cess on that tax. The rate is the same whatever your income slab and however long you held the coins. If your total income is above ₹50 lakh, a surcharge also applies.
A gain is taxed whenever you transfer crypto: selling it for rupees, swapping it for another coin, or spending it.
Only the purchase cost is deductible
When working out your gain, you can subtract only what you paid to acquire the coins. Trading fees, gas fees, internet costs and other expenses can't be deducted.
Losses don't reduce your tax
This is the rule that surprises most people. A loss on one coin can't be set off against a gain on another coin, against other income, or carried forward to later years.
Example: you make ₹1,00,000 profit on Coin A and lose ₹60,000 on Coin B. Your net result is ₹40,000, but tax is charged on the full ₹1,00,000 gain: ₹30,000 tax plus ₹1,200 cess, ₹31,200 in total.
A simple worked example
You buy crypto for ₹1,00,000 and sell it for ₹1,50,000. Your gain is ₹50,000. Tax at 30% is ₹15,000, cess at 4% of that is ₹600, so total tax is ₹15,600. If 1% TDS (₹1,500) was deducted on the sale, you pay the remaining ₹14,100 when you file.
Frequently asked questions
Is crypto-to-crypto swapping taxed?
Yes. A swap is treated as transferring the coin you give up, so any gain on it is taxed at 30% plus cess.
Where do I report crypto gains?
In the Schedule VDA section of your income tax return. Rules and forms change, so check with a chartered accountant.
For education only — not financial or tax advice. Crypto is volatile and rules change; do your own research and consult a qualified professional.