Crypto Tax in India: 30% + 1% TDS Explained
The 30% flat tax
Under the Finance Act 2022, income from transfer of virtual digital assets (VDAs) is taxed at a flat 30% (plus applicable surcharge and cess) in India, regardless of holding period. Losses cannot be set off against other income or carried forward.
The 1% TDS
A 1% Tax Deducted at Source (TDS) applies on crypto transactions above ₹50,000 in a financial year (₹10,000 for some individuals). Exchanges typically deduct this; on P2P/DEX trades the obligation can fall on the buyer.
What is a taxable event
Selling crypto for INR, trading one crypto for another, and using crypto to buy goods/services are generally taxable. Keep detailed records of every transaction, including dates, values and fees.
Staying compliant
Maintain complete records and reconcile across every exchange and wallet. A crypto tax tool such as Koinly or CoinTracker can import your history and generate India-ready reports. This is general information, not tax advice — consult a qualified professional.
Mentioned in this guide
FAQ
What does this guide cover? +
A clear explainer of how crypto is taxed in India — the flat 30% tax on gains, the 1% TDS, what counts as a taxable event, and how to stay compliant.
The 30% flat tax +
Under the Finance Act 2022, income from transfer of virtual digital assets (VDAs) is taxed at a flat 30% (plus applicable surcharge and cess) in India, regardless of holding period. Losses cannot be set off against other income or carried forward.
The 1% TDS +
A 1% Tax Deducted at Source (TDS) applies on crypto transactions above ₹50,000 in a financial year (₹10,000 for some individuals). Exchanges typically deduct this; on P2P/DEX trades the obligation can fall on the buyer.
What is a taxable event +
Selling crypto for INR, trading one crypto for another, and using crypto to buy goods/services are generally taxable. Keep detailed records of every transaction, including dates, values and fees.
Staying compliant +
Maintain complete records and reconcile across every exchange and wallet. A crypto tax tool such as Koinly or CoinTracker can import your history and generate India-ready reports. This is general information, not tax advice — consult a qualified professional.
Reviewed by Arjun Mehta
Crypto analyst; 8+ years covering exchanges, wallets and DeFi
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