1What is the tax rate on crypto in India?
A flat 30% on gains under Section 115BBH , regardless of your slab or holding period. There's no lower long-term rate, plus a 4% cess on the tax like other income.
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ArticleCrypto and other virtual digital assets (VDAs) have their own strict tax rules in India that are far less forgiving than ordinary investments. Here's how crypto is taxed and how to stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Crypto and other virtual digital assets are taxed at a flat 30%, with 1% TDS and no loss set-off. Here's what investors need to know.
Profit on the transfer of a virtual digital asset is taxed at a flat 30% under Section 115BBH, regardless of your income slab and regardless of how long you held it. There's no lower long-term rate, so the holding period doesn't help the way it does with other assets.
The only thing you can subtract from your sale value is the cost of acquiring the asset. No other expenses — not interest, not transaction or platform costs beyond cost of acquisition — are deductible against crypto gains. This makes the effective tax high.
A loss on one virtual digital asset cannot be set off against the gain on another, nor against any other income, and it can't be carried forward. Each gain is taxed on its own, so you can't net a losing trade against a winning one — a key difference from stocks.
A 1% TDS applies on the transfer of virtual digital assets above the prescribed threshold, deducted at the point of transfer. It shows in your records and is adjusted against your final tax, but it also means the department has a trail of your transactions — so report everything.
Crypto activity is increasingly visible to the tax department, so report all your VDA gains and pay the 30% tax. Given the flat rate, no loss set-off and active scrutiny, accurate reporting matters more here than almost anywhere else.
A flat 30% on gains under Section 115BBH , regardless of your slab or holding period. There's no lower long-term rate, plus a 4% cess on the tax like other income.
No — crypto losses can't be set off against other crypto gains or any other income, and can't be carried forward. Each gain is taxed on its own, unlike stocks where losses can be netted.
Yes — a 1% TDS applies on transfers of virtual digital assets above the prescribed threshold. It's adjusted against your final tax and creates a transaction trail, so report all activity.
Trading or investing in crypto? Write to the firm and we'll get your VDA gains reported and the tax computed correctly.