Beginner guide
Crypto tax in India, explained
How India taxes crypto (VDAs): 30% tax on gains, 1% TDS, no loss set-off, gifts. Plain-English beginner guide with official sources.
Short answer
India taxes gains on virtual digital assets (VDAs) at a flat 30% plus cess, with no deduction except the cost of buying. Losses cannot be set off against other income, and 1% TDS applies to many transfers.
Common questions
Can I offset a crypto loss against a gain?
Under the current VDA rules, a loss on one asset cannot be set off against other income or carried forward. Check the latest rules each year.
Is the 1% TDS an extra tax?
No. It is tax collected in advance. It shows in your Form 26AS / AIS and counts toward what you owe.
Is crypto received as a gift taxed?
Gifts of VDAs can be taxed in the hands of the person receiving them, with exceptions such as some gifts from relatives.
Where do I check the official rules?
On incometax.gov.in and in the annual Finance Act. Rules change, so confirm before you file or ask a chartered accountant.
Learn it properly (free)
- India crypto tax calculator and ITR Schedule VDA guide
- Crypto taxes around the world: UK, Canada, Australia, India and more
- What Is Cost Basis in Crypto?
- Do you pay tax on gifted crypto?
- Crypto Tax Estimator: US and India (30% Tax, 1% TDS)
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