Quick answer
How is crypto taxed in India?
Gains are taxed at a flat 30% plus cess, only the purchase cost is deductible, and losses cannot be set off or carried forward. The 1% TDS deducted by Indian exchanges is an advance that you claim in your ITR.
How crypto is taxed in India
- Gains on selling or swapping crypto (and other virtual digital assets such as NFTs) are taxed at a flat 30% plus cess, whatever your income slab.
- Only the cost of buying the asset can be deducted. No other expenses are allowed.
- A loss on one coin cannot be set off against a gain on another coin or any other income, and cannot be carried forward.
- Indian exchanges deduct 1% TDS on sales above the limits. This TDS shows in your AIS and Form 26AS, and you claim it in your return.
- Crypto received as a gift can be taxable for the person receiving it, unless it comes from a relative.
- Rewards from staking or airdrops are generally taxed as income when received, and again at 30% when you sell.
What we do
- Collect reports from every exchange and wallet you use, Indian or foreign.
- Match the TDS in your AIS with your exchange records, entry by entry.
- Compute gains for each sale or swap, with dates and cost of acquisition.
- Fill Schedule VDA in ITR-2 or ITR-3, claim the TDS credit and file.
Did not report crypto in an earlier year? An updated return (ITR-U) can usually be filed up to 4 years from the end of the assessment year, with additional tax. It is far better than waiting for a notice. Talk to us before the department writes to you.
What clients say
Silvia Consulting is doing excellent work in tax filling. Jerome has helped me to file ITR 3 with ease and explained me all the doubts I asked.
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Common questions
My exchange already deducted 1% TDS. Do I still need to pay tax?
Usually yes. The 1% TDS is only an advance. The actual tax is 30% of your gains plus cess. The TDS is adjusted against it, and any excess is refunded.
Can I set off a loss on one coin against a gain on another?
No. Under current rules, a loss on one virtual digital asset cannot be set off against a gain on another, or carried forward.
I trade on a foreign exchange with no TDS. Is it still taxable?
Yes, if you are a resident of India. There is no TDS, but the gains are taxable and must be reported.
Which ITR form do I use for crypto?
ITR-2 if crypto is an investment, or ITR-3 if you trade it as a business. Either way, the 30% rate applies to gains.
Get a clear quote today
Send us a WhatsApp with a line about your situation. The first consultation is free, and we reply within one working day, usually the same day.