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Crypto Tax Calculator — India
Section 115BBH · Flat 30% + 4% Cess · 1% TDS · FY 2025-26
Calculate tax on Bitcoin, Ethereum, altcoins — results update instantly
BitcoinEthereumAltcoinsNFTsAirdrops
🔥
Tax rate
30% flat
no LTCG/STCG
📋
Cess
+ 4%
on tax amount
🏦
TDS
1% deducted
on sell value
🚫
Loss set-off
Not allowed
per Sec 115BBH
Choose calculator mode
Enter your trade details — type a value or drag the slider
₹
₹1₹1Cr
₹
₹1₹1Cr
coins
0.001₹1K
Capital gain
₹7.50 L
taxable at 30% + cess
Total tax (30% + 4% cess)
₹2.34 L
13.4% of sell value
Net in hand
₹15.16 L
after ₹₹17,500 TDS credit
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You owe ₹2.17 L in crypto tax this year!
30% tax on ₹₹7.5L gain = ₹₹2.3L + ₹₹9,000 cess. ₹₹17,500 TDS already deducted by exchange. Pay the remaining ₹₹2.2L via advance tax.
Trade tax summary
| Particulars | Amount |
|---|---|
| Buy value (cost of acquisition) | ₹10.00 L |
| Sell value | ₹17.50 L |
| Gain | ₹7.50 L |
| Tax @ 30% (Section 115BBH) | ₹2.25 L |
| Health & Education Cess @ 4% | ₹9,000 |
| Total tax payable | ₹2.34 L |
| TDS deducted by exchange (1%) | − ₹17,500 |
| Balance tax to pay (advance tax) | ₹2.17 L |
Where your sell value goes
Cost basisGainTax (30%+c)Net in hand
Cost basis
₹10.0L
Gain
₹7.5L
Tax (30%+c)
₹2.3L
Net in hand
₹15.2L
How crypto tax is calculated — Section 115BBH
Tax = Gain × 30% + (Gain × 30%) × 4%
Gain = Sell value − Cost of acquisition
30% = Flat tax rate (no LTCG/STCG distinction)
4% = Health & Education Cess on tax amount
TDS = 1% of sell value (deducted by exchange if sell > ₹50,000)
No deduction other than cost of acquisition is allowed
Example: Buy BTC at ₹20L, sell at ₹35L (0.5 BTC)
Gain = (₹35L − ₹20L) × 0.5 = ₹7,50,000
Tax = ₹7,50,000 × 30% = ₹2,25,000
Cess = ₹2,25,000 × 4% = ₹9,000
TDS = ₹17,50,000 × 1% = ₹17,500
Pay = ₹2,34,000 − ₹17,500 = ₹2,16,500
Tax = ₹7,50,000 × 30% = ₹2,25,000
Cess = ₹2,25,000 × 4% = ₹9,000
TDS = ₹17,50,000 × 1% = ₹17,500
Pay = ₹2,34,000 − ₹17,500 = ₹2,16,500
Crypto Tax in India — Complete Guide FY 2025-26
India introduced a dedicated tax regime for Virtual Digital Assets (VDAs) — which includes all cryptocurrencies, NFTs, and DeFi tokens — through Section 115BBH of the Income Tax Act, effective from FY 2022-23. The rules are among the strictest in the world: a flat 30% tax on all gains, regardless of whether you held the asset for one day or ten years, plus a 1% TDS on every transaction above ₹50,000.
Crypto income must be declared in your ITR — typically under "Income from Other Sources" or "Schedule VDA" (introduced in ITR-2 and ITR-3 from AY 2023-24). Failure to report can attract penalties of 50–200% of the tax amount, plus prosecution in serious cases.
What crypto events are taxable in India?
| Event | Taxable? | Tax rate | Notes |
|---|---|---|---|
| Sell crypto for INR | ✓ Yes | 30% + cess | Most common event; gain = sell − buy price |
| Crypto-to-crypto swap | ✓ Yes | 30% + cess | Each swap treated as a sale at fair market value |
| Crypto to buy goods/services | ✓ Yes | 30% + cess | INR equivalent of asset at time of use |
| Airdrop received | ✓ Yes | 30% + cess | Taxed at fair market value on date received |
| Mining rewards | ✓ Yes | 30% + cess | Taxed as income on date received at FMV |
| Staking rewards | ✓ Yes | 30% + cess | Taxed on receipt; cost basis = FMV at receipt |
| NFT sale | ✓ Yes | 30% + cess | Gain = sale − cost of creation/purchase |
| Gift of crypto (given) | ✓ Yes | 30% + cess | Donor taxed; recipient may be taxed too |
| Gift received from non-relative | ✓ Yes | 30% + cess | Taxed in receiver's hands if FMV > ₹50,000 |
| Transfer between own wallets | ✗ No | Nil | Not a taxable event; maintain wallet records |
| Crypto purchase (buy only) | ✗ No | Nil | Only taxed on disposal/sale |
| P2P transfer to spouse | Clubbing rule | 30% + cess | Income may be clubbed with transferor's income |
How does 1% TDS on crypto work?
Under Section 194S, exchanges must deduct 1% TDS on the sell value of crypto transactions exceeding ₹50,000 per financial year (₹10,000 for non-specified persons). This TDS is a credit against your final tax liability — not an additional tax.
Exchange deducts
1% at the time of sale. You receive (sell value − 1%) in your bank/exchange account.
Claim as credit
The TDS amount appears in your Form 26AS. You claim it as a tax credit when filing ITR.
P2P / overseas
For P2P trades or overseas exchanges, the buyer must deduct and deposit TDS — in practice, this is often missed and creates compliance risk.
The no-loss set-off rule — India's harshest crypto provision
Section 115BBH(2) explicitly states that losses from VDA transactions cannot be set off against any other income — including:
✕ Gains from another cryptocurrency
✕ Equity / stock market gains
✕ Salary or business income
✕ Interest or rental income
✕ Any other head of income
✕ Cannot be carried forward to next year
Practical impact: If you made ₹5L profit on Bitcoin and ₹5L loss on a meme coin in the same year, your net economic gain is ₹0 — but your tax bill is ₹1,56,000 (30% + cess on the ₹5L gain). The loss is dead weight.
How to report crypto income in your ITR
01
Choose the right ITR form
If you have crypto income, use ITR-2 (no business income) or ITR-3 (with business income). ITR-1 (Sahaj) cannot be used if you have VDA income.
02
Fill Schedule VDA
ITR-2 and ITR-3 have a dedicated 'Schedule VDA' where you enter each crypto transaction: date, type, buy price, sell price, and gain.
03
Claim TDS credit
Cross-check your Form 26AS and AIS for TDS deducted by exchanges (under Section 194S). Claim this as a credit to reduce tax payable.
04
Pay advance tax
If your total tax liability (including crypto) exceeds ₹10,000/year, pay advance tax in 4 instalments (Jun 15, Sep 15, Dec 15, Mar 15) to avoid interest under Section 234B/C.
Calculate your total income tax including crypto
Add your crypto gains to salary income and see total tax liability
Frequently asked questions about crypto tax in India
Is crypto-to-crypto swap taxable in India?▼
Yes — every crypto-to-crypto swap (e.g. BTC → ETH, ETH → USDT) is treated as a taxable sale event under Section 115BBH. The fair market value (INR equivalent) of the asset you're giving away on the date of the swap is your 'sell price', and the cost at which you originally bought it is your 'buy price'. The gain is taxed at 30% + 4% cess. This makes DeFi trading, DEX swaps, and stablecoin conversions all taxable — even if you never touch INR.
What is the cost of acquisition for gifted or airdropped crypto?▼
For airdrops: the fair market value (in INR) on the date you received the airdrop becomes your cost of acquisition for future sales, and the FMV at receipt is taxed as income in the year received. For crypto received as a gift from a non-relative exceeding ₹50,000 FMV: the recipient pays tax at 30% on the FMV. For gifts from relatives (as defined in Income Tax Act), no tax at receipt — but when you sell, your cost basis is the original cost to the giftor.
Can I use FIFO, LIFO or average cost for cost basis?▼
The Income Tax Act does not specify a costing method for crypto. However, the standard approach recommended by most chartered accountants and followed by the IT department is FIFO (First In, First Out) — consistent with how mutual funds and securities are typically treated. Some argue for specific identification, but without clear guidance, FIFO is the safest method to use and defend in case of scrutiny.
Are crypto losses from previous years deductible?▼
No. Crypto losses from FY 2022-23 onwards cannot be carried forward to subsequent years under Section 115BBH. This is explicitly prohibited in the law. Losses from before FY 2022-23 (when crypto may have been taxed under capital gains) might have different treatment — consult a CA for pre-2022 positions. Practically, if you had large unrealised losses going into FY 2022-23, you could not harvest them to offset future gains.
Do I need to pay tax if I haven't withdrawn to my bank account?▼
Yes. Tax liability arises at the point of the taxable event (sale, swap, receipt of rewards), not when you withdraw to your bank account. If you swapped BTC for ETH on a DEX in December 2024, that's a taxable event in FY 2024-25 — even if you never touched INR and never withdrew to a bank. Advance tax on such gains should be paid by March 15, 2025.
What records should I maintain for crypto tax compliance?▼
Maintain detailed records for every transaction: date and time of transaction, type (buy, sell, swap, receive), asset name and quantity, INR equivalent value at the time of transaction, the exchange/wallet involved, and transaction hash for on-chain activity. Download and store CSV transaction history from every exchange you use, annually or more frequently. Most Indian exchanges (CoinDCX, WazirX, Zebpay) provide downloadable transaction history — download these before they change their data retention policies.
What happens if I don't report crypto income?▼
The Income Tax Department has access to exchange data through TDS filings (Form 26QE) and FEMA reporting. If unreported crypto income is detected: you pay the tax plus 12% annual interest (Section 234A/B/C) plus a penalty of 50% of tax evaded (Section 270A) for under-reporting, or 200% for misreporting. In serious cases, prosecution under Section 276C can lead to imprisonment. The risk is not worth it — crypto transactions leave permanent on-chain records.
Are NFTs taxed the same as cryptocurrency?▼
Yes. NFTs are explicitly classified as Virtual Digital Assets (VDA) under the Income Tax Act. Selling an NFT at a profit attracts 30% + 4% cess on the gain. Creating and selling an NFT as a business may be treated differently (business income), but for individual investors, gains from NFT sales are taxed at the flat 30% rate. The 1% TDS also applies to NFT transactions on Indian platforms.