Crypto Tax Calculator for India
Calculate Your Crypto Tax Liability
India taxes crypto gains at 30% with 1% TDS on transactions. Enter your details to see your tax liability.
Note: India's tax rules apply to all cryptocurrency transactions, including trades, sales, and staking rewards. Remember to declare all gains in your income tax return.
Is crypto regulated in India? The short answer: yes, but not how you might expect. You can buy, sell, and hold Bitcoin, Ethereum, and other digital assets without breaking the law. But the government isn’t giving you a thumbs-up. Instead, it’s watching every transaction, taxing you heavily, and leaving big questions unanswered.
What’s Legal and What’s Not
As of 2025, cryptocurrencies are not banned in India. You won’t get arrested for owning Bitcoin. You can use platforms like WazirX, CoinDCX, or ZebPay to trade. But here’s the catch: the Indian government has never said crypto is legal tender. That means you can’t use it to pay for groceries, rent, or your phone bill like you would with rupees. It’s treated like property-something you own, not something you spend. The legal foundation comes from the Income Tax (No. 2) Bill, 2025, passed in August 2025. It formally defines crypto assets as Virtual Digital Assets (VDAs). This includes Bitcoin, Ethereum, NFTs, and even tokens from decentralized apps. The only thing left out? Indian rupees and foreign currencies. Everything else falls under this new label.The 30% Tax That Changes Everything
India doesn’t just regulate crypto-it taxes it aggressively. If you make money from selling Bitcoin, trading altcoins, or even swapping one token for another, you pay a flat 30% tax on your profits. No deductions. No offsetting losses. If you bought Ethereum for ₹50,000 and sold it for ₹80,000, you owe ₹9,000 in tax on the ₹30,000 gain. Even if you lost money on other trades that year, you can’t use those losses to reduce your tax bill. That’s stricter than stocks or real estate. On top of that, there’s a 1% Tax Deducted at Source (TDS) on every crypto transaction. That means if you sell ₹100,000 worth of crypto, ₹1,000 gets taken out before you even see your money. The exchange handles it, but it’s still your money. This applies to every trade, even between wallets on the same platform. It’s designed to track every movement, not just big profits. These rules make India one of the most expensive places in the world to trade crypto. Compare that to the U.S., where long-term capital gains can be taxed as low as 0% or 15%, or the EU, where many countries offer exemptions for small holdings. India’s approach isn’t about encouraging innovation-it’s about control and revenue.Who’s Watching Your Transactions
The government doesn’t rely on self-reporting. It has systems in place to catch you if you don’t declare your crypto income. The Financial Intelligence Unit India (FIU-IND) collects data from exchanges and requires them to report suspicious activity. Banks are required to flag large transfers to crypto platforms. The Income Tax Department uses AI tools to match wallet addresses with bank accounts and PAN numbers. Since 2019, the tax department has sent out thousands of notices to crypto traders. These aren’t random. They’re targeted. If you’ve ever transferred ₹50,000 or more to a crypto exchange and didn’t report it, you’ve likely received one. The notices ask for transaction history, wallet addresses, and proof of income. Ignoring them can lead to penalties, interest, or even a full audit. Even if you use a non-Indian exchange like Binance or Kraken, you’re still required to report gains to Indian tax authorities. The government has agreements with other countries to share financial data under the Crypto-Asset Reporting Framework (CARF), which India signed onto at the 2023 G20 summit. Your overseas trades aren’t safe.
Why There’s No Clear Law-Yet
You might wonder: if crypto is taxed and tracked, why isn’t there a full law? The answer is politics. Back in 2019, the government drafted a bill called the Banning of Cryptocurrency & Regulation of Official Digital Currency Bill. It aimed to ban private crypto and launch a government-backed digital rupee. That bill never made it to Parliament. Five years later, it’s still sitting on a shelf. The Reserve Bank of India (RBI) has always been skeptical. It warned about crypto as early as 2013 and even banned banks from serving crypto firms in 2018. That ban was overturned by the Supreme Court in 2020, which ruled that the RBI overstepped its authority. But the court didn’t say crypto was legal-it just said the RBI couldn’t block banks without proof of harm. Meanwhile, the Ministry of Finance wants taxes. SEBI, India’s stock market regulator, has hinted that crypto could be treated like securities if properly regulated. But no one has pushed for a unified law. So we’re stuck in a middle ground: crypto isn’t illegal, but it’s not protected either. You can own it, but you can’t count on it.What Happens If You Don’t Report
Not reporting crypto gains is risky. The penalty for underreporting income is 50% to 200% of the tax evaded, plus interest that compounds monthly. If you’re caught, you could face a legal notice, a frozen bank account, or even a criminal investigation for tax fraud. Many people think using a foreign exchange or a private wallet keeps them off the radar. It doesn’t. The government has access to blockchain analytics tools. Wallets aren’t anonymous-they’re traceable. If your bank account shows regular deposits from a known crypto exchange, and you didn’t report it, the system will flag you. Even small traders aren’t safe. One user in Pune reported earning ₹12,000 from crypto trading in 2024 and didn’t file. He got a notice in March 2025. He paid ₹3,600 in tax, ₹1,800 in penalty, and ₹900 in interest. Total cost: ₹6,300 for ₹12,000 in profit.
What’s Next for Crypto in India
The government isn’t moving toward banning crypto. It’s moving toward controlling it. The digital rupee (e₹) is being tested in select cities, and officials say it will eventually replace cash for some transactions. That means the state wants to be the only issuer of digital money. But crypto isn’t going away. India has over 15 million crypto users, the third-largest in the world after the U.S. and Nigeria. Exchanges are still growing. People are still trading. The government knows it can’t stop that. So instead, it’s taxing it, tracking it, and hoping to turn it into a revenue stream. In the next few years, we’ll likely see more clarity. Maybe SEBI will step in to license crypto exchanges like brokerages. Maybe there’ll be a legal framework for DeFi or staking. But don’t expect freedom. Expect more rules, more reporting, and higher taxes.What You Should Do Now
If you’re trading crypto in India, here’s what to do:- Keep a detailed record of every transaction-buy, sell, swap, stake, or gift.
- Use accounting tools like Koinly or CoinTracker to calculate your gains and losses.
- Report all VDA income in your income tax return under ‘Income from Other Sources’.
- Pay the 1% TDS when you trade-don’t assume it’s optional.
- If you’re unsure, talk to a chartered accountant who understands crypto taxation.
Is it legal to buy Bitcoin in India in 2025?
Yes, it’s legal to buy, sell, and hold Bitcoin and other cryptocurrencies in India as of 2025. However, they are not recognized as legal tender. You can’t use them to pay for goods or services officially, but owning and trading them is permitted under the current tax framework.
Do I have to pay tax on crypto gains in India?
Yes. All profits from cryptocurrency transactions are taxed at a flat 30%. This includes trading, selling, swapping tokens, or receiving crypto as payment. You cannot offset losses from one trade against gains from another. Additionally, a 1% TDS is deducted on every transaction.
Can I use Binance or other foreign exchanges in India?
Yes, you can use foreign exchanges like Binance, Kraken, or Coinbase. However, you are still legally required to report all gains to the Indian Income Tax Department. The government has international agreements to share transaction data, so using offshore platforms does not exempt you from tax obligations.
What happens if I don’t report my crypto income?
If you don’t report crypto income, you risk receiving a tax notice, paying penalties of up to 200% of the unpaid tax, and accruing monthly interest. The Income Tax Department actively tracks transactions through bank records, exchange data, and blockchain analytics. Even small amounts can trigger audits.
Is staking crypto taxable in India?
Yes. Rewards earned from staking, lending, or yield farming are treated as income and taxed at 30%. The value of the reward at the time you receive it is considered your taxable income. For example, if you earn 0.5 ETH as staking rewards worth ₹25,000, you owe ₹7,500 in tax on that amount.
Will India ban crypto in the future?
A full ban is unlikely. The government has moved away from prohibition and is instead focusing on taxation and control. The 2019 ban bill was never passed, and current policy prioritizes revenue collection and monitoring over outright prohibition. The future points toward regulated crypto, not banned crypto.
Is the digital rupee the same as cryptocurrency?
No. The digital rupee (e₹) is a central bank digital currency (CBDC) issued and controlled by the Reserve Bank of India. It’s backed by the government and functions like digital cash. Cryptocurrencies like Bitcoin are decentralized, not issued by any government, and operate on public blockchains. They are completely different in structure and purpose.
Do I need to report crypto gifts or airdrops?
Yes. If you receive crypto as a gift or airdrop, it’s taxable as income at its fair market value when you receive it. If you later sell it, you’ll pay 30% on any profit. The giver doesn’t pay tax unless they’re a business or making a commercial transfer.
Cryptocurrency Guides
Dave Sorrell
November 22, 2025 AT 11:04India's approach to crypto is less about banning and more about extracting revenue. The 30% tax without loss offset is brutal compared to global norms. Most countries treat crypto like capital assets - India treats it like a sin tax on tech-savvy citizens.
And the 1% TDS on every single trade? That’s not regulation - it’s surveillance with a side of greed. Even micro-trades get hit. It chills innovation more than any ban ever could.
Sky Sky Report blog
November 23, 2025 AT 06:04It’s interesting how the government avoids calling crypto legal while taxing it like it is. The contradiction is obvious but nobody wants to fix it. Maybe they’re waiting for the digital rupee to take over before making a real move.
stuart white
November 24, 2025 AT 08:38Bro. India just turned crypto into a cash cow. 30% tax? No loss carryforwards? TDS on every swap? This isn’t regulation - it’s extortion dressed up as fiscal policy.
I’ve seen tax systems in Eastern Europe that were more reasonable. At least they didn’t pretend they cared about your wallet address. Here? They’re literally using blockchain analytics to hunt down small-time traders. This is dystopian capitalism with a Bharat Modi logo on it.
Jenny Charland
November 24, 2025 AT 11:42OMG I JUST GOT A NOTICE 😭 I made ₹8k from staking last year and didn’t report it… now I owe ₹2.4k in penalties + interest. I thought no one cared about small traders. WRONG. The tax dept has AI bots crawling every wallet. Don’t be like me. REPORT EVERYTHING. Even if it’s airdrops. Even if it’s 0.001 BTC.
Also - Koinly saved my life. Use it. I’m crying into my chai right now.
asher malik
November 25, 2025 AT 09:15There’s something deeply ironic about a country that still struggles with basic banking infrastructure suddenly becoming the world’s most aggressive crypto tax enforcer.
On one hand, you’ve got farmers in Bihar using UPI to send ₹50 to relatives. On the other, the government is deploying AI to trace Bitcoin wallets across continents. The disconnect is surreal.
Is this about revenue? Or is it about control? Because if it’s about control - then the digital rupee isn’t the future. It’s the endpoint.
And honestly? I don’t think most people realize they’re being slowly transitioned from financial autonomy to financial obedience. The tax code is the quiet revolution.
Tyler Boyle
November 25, 2025 AT 18:06Let’s break this down properly because people keep misunderstanding the tax structure. The 30% tax applies only to capital gains - not the total transaction amount. So if you buy BTC at ₹5L and sell at ₹6L, you pay 30% on ₹1L, not ₹6L. That part is clear.
But the 1% TDS is where it gets messy. It’s deducted at source on the entire transaction value, regardless of profit or loss. So if you swap ETH for SOL and lose 20% in value, you still pay 1% TDS on the full swap value. That’s a hidden cost that eats into your principal - not just your profit.
And here’s the kicker: the tax department doesn’t distinguish between speculative trading and long-term holding. No distinction between short-term and long-term capital gains like in the US. So even if you hold Bitcoin for five years, you still pay 30%. That’s not a tax policy - it’s a punitive regime disguised as fiscal discipline.
Also, the lack of clarity on DeFi staking, NFT sales, and cross-chain swaps is intentional. Ambiguity creates compliance friction, which means more audits, more fear, and more revenue.
And yes, using Binance or Kraken doesn’t help. CARF means India gets your data from over 100 jurisdictions. Your offshore wallet? It’s not anonymous. It’s just a target with a longer name.
Even gifts and airdrops are taxable at FMV. So if you get 0.1 ETH as airdrop worth ₹30k, that’s ₹9k tax due immediately - even if you never sell it. That’s insane. No other asset class works like this.
And don’t get me started on the fact that the government won’t classify crypto as property, securities, or currency. It’s a legal black hole. You’re taxed like it’s income, but you can’t deduct expenses like you would with a business. No depreciation. No cost basis adjustments. Nothing. Just 30% and silence.
The only thing keeping this from total collapse is the sheer number of users - 15 million people are still trading despite this mess. That’s not a market. That’s a protest in code.
jocelyn cortez
November 27, 2025 AT 17:32I appreciate how detailed this is. I’ve been holding crypto for years and never knew how much I was risking by not tracking everything. I’m going to start using CoinTracker this week. Thank you for the clarity.
Gus Mitchener
November 29, 2025 AT 03:29The VDA classification is a semantic sleight of hand. Virtual Digital Assets - a term engineered to avoid legal precedent. It’s neither property nor currency, so it falls outside traditional tax jurisprudence. That’s not oversight. That’s legislative evasion.
By refusing to define crypto under existing categories, the state avoids constitutional obligations - like due process, equal protection, or proportional taxation. You’re taxed as if you earned income, but you’re denied the deductions of an entrepreneur. You’re regulated as if you’re a financial intermediary, but you’re not licensed as one.
This isn’t policy. It’s legal limbo designed to maximize compliance costs and minimize accountability.
Tejas Kansara
November 29, 2025 AT 10:48As an Indian, I get the frustration. But honestly? At least we have rules now. A few years ago, no one knew what to do. Now you know: track, report, pay. It’s harsh, but it’s clear. Better than the chaos before.
Also, if you’re using Indian exchanges, TDS is already taken. Just file your ITR. No big deal.
Lisa Hubbard
November 29, 2025 AT 11:21So let me get this straight - the government doesn’t want crypto banned, but they also don’t want anyone to actually benefit from it? They just want to take 30% and call it a day? And then pretend they’re being ‘progressive’ by not outlawing it?
It’s like they’re holding a gun to your head and saying, ‘You can live, but you’ll pay for every breath.’
And the worst part? They’re not even trying to make it fair. Just… extractive. And lazy. Like they couldn’t be bothered to build a real system, so they slapped on a tax code that feels like revenge.
Belle Bormann
November 30, 2025 AT 08:46hey i just found out i need to report my airdrops too?? i thought only sales counted… oops. im gonna use koinly now. thanks for the heads up!!