When you trade or sell India crypto tax, the official tax system that treats cryptocurrency as a taxable asset under Indian law. Also known as crypto capital gains tax India, it applies to every sale, swap, or cash-out — not just mining or staking rewards. There’s no 0% rate, no exemptions for small trades, and no hiding behind anonymity. The rules are strict, and the government is watching.
Since 2022, India has treated cryptocurrency, digital assets that function as a medium of exchange, store of value, or investment. Also known as crypto, these are subject to specific tax treatment under Indian income law. as property, not currency. That means every time you sell Bitcoin for INR, trade Ethereum for Solana, or use BNB to buy an NFT, you trigger a taxable event. The tax rate? A flat 30% on profits — no deductions, no offsets, no loss carryforwards. On top of that, there’s a 1% TDS (Tax Deducted at Source) on every crypto transaction over ₹10,000. That’s not just on exchanges — it’s on peer-to-peer trades too. If you’re using a wallet to send crypto to a friend and they sell it later, the buyer’s exchange will still withhold that 1%.
What about staking or airdrops? They count as income, any crypto received as compensation, reward, or gift that must be reported as taxable income in India. Also known as crypto income, this includes interest from DeFi protocols, rewards from validators, and tokens received for free.. You pay 30% on the INR value of the token when you receive it. No waiting until you sell. If you get 100 SOL in an airdrop worth ₹50,000, that’s ₹50,000 of taxable income — even if you never touch it. And if you later sell those tokens? You pay another 30% on the profit. Double taxation? Yes. Legal? Yes. Avoidable? Not anymore.
Reporting is just as tough. You need to track every single transaction — buys, sells, swaps, transfers — and convert them all to INR at the exact time of the trade. Most people use Excel or free tools, but the government expects accuracy. If you’re audited, you’ll need proof of purchase price, date, and exchange rate. No receipts? No deductions. No estimates. Just the numbers you can prove.
And it’s not just about individuals. If you run a crypto business in India — even a small one — you’re dealing with the same rules. No special startup breaks. No tax holidays. The system doesn’t care if you’re a trader, miner, or developer. If you profit from crypto, the taxman wants his cut.
Below, you’ll find real guides, breakdowns, and clarifications from people who’ve been through it. No fluff. No theory. Just what you need to know to stay compliant — and avoid costly mistakes in 2025.
In 2025, countries like China, Bangladesh, Algeria, and Bolivia ban cryptocurrency entirely, while India punishes users with extreme taxes. These restrictions don’t stop crypto - they push it underground, putting ordinary people at risk.
