India Crypto Tax: What You Need to Know About Rules, Rates, and Real Impact
When you buy or sell cryptocurrency, a digital asset traded on decentralized networks, subject to unique tax rules in India. Also known as digital assets, it’s treated as a taxable property under Indian law, not currency. Since April 2022, India slapped a flat 30% tax on all crypto profits—no deductions, no losses offset, no exemptions. That’s not just high; it’s one of the strictest crypto tax regimes in the world.
Then came the 1% TDS, a withholding tax deducted at source on every crypto transaction above ₹10,000 in a financial year. This isn’t just a tax—it’s a tracking tool. Every time you trade on WazirX, CoinDCX, or even peer-to-peer, 1% gets pulled out before you even see your funds. The government doesn’t care if you lost money. If you moved crypto, they took a cut. And if you’re holding crypto in a wallet you didn’t buy through an exchange? You still have to report it. The Income Tax Department, India’s tax authority with growing crypto surveillance capabilities. Also known as CBDT, it now cross-checks bank statements, wallet addresses, and exchange data to catch unreported trades. No one’s getting away with silence anymore.
What does this mean for you? If you bought Bitcoin in 2021 and sold it in 2023 for a profit, you owe 30% on that gain—even if you used the money to pay rent or buy groceries. If you gifted crypto to a friend? That’s taxable too. Even staking rewards and airdrops count as income. There’s no grandfathering. No crypto-specific allowances. Just a hard 30% and a 1% tax on every move.
And yet, millions still trade. Why? Because crypto isn’t going away. It’s just moved underground in some ways—people use P2P platforms, foreign exchanges, or even mixers to avoid TDS. But that’s risky. The Enforcement Directorate is already investigating crypto-related money laundering. The audit trail is getting tighter.
What you’ll find in this collection are real, no-fluff guides on how India’s crypto tax rules play out in practice. You’ll see breakdowns of how to calculate your tax liability, what records to keep, and which exchanges report to the government. You’ll learn how to handle losses without deductions, why airdrops are taxable even if you didn’t ask for them, and how to avoid common filing mistakes that trigger notices. No theory. No guesswork. Just what’s happening right now, on the ground, in India’s crypto scene.
- By Eva van den Bergh
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- 31 Oct 2025
Mining Crypto in India: Legal Rules and Strict Restrictions in 2025
Crypto mining in India is not illegal but is heavily restricted by a 30% tax on mined coins, no expense deductions, 1% TDS, and 18% GST. Enforcement is strict, with AI monitoring and heavy penalties for non-compliance.