Crypto Tax Calculator for India
Calculate Your Crypto Tax Liability
Based on India's current tax laws: 30% capital gains tax and 1% TDS on all trades
Tax Calculation Results
Based on India's current tax laws (30% capital gains tax + 1% TDS)
Tax laws may change. Always consult a tax professional for personalized advice.
Before March 2020, if you wanted to buy Bitcoin in India, you had to find a way around the banks. Not because the government had outlawed crypto - but because the RBI banking ban made it nearly impossible to fund your trades. Exchanges couldnât open bank accounts. Deposits got frozen. Withdrawals disappeared. People lost money. Startups shut down. And yet, millions kept trading - through peer-to-peer deals, cash transfers, and offshore wallets. The system was broken. Then the Supreme Court stepped in.
How the RBIâs 2018 Ban Crushed Indiaâs Crypto Scene
In April 2018, the Reserve Bank of India issued a circular that told all banks and financial institutions: stop serving anyone dealing in virtual currencies. No accounts. No UPI. No NEFT. No wire transfers. The move wasnât a law. It wasnât even a bill. It was a regulatory order with the force of law. And it worked - too well. Within months, Indiaâs top crypto exchanges like WazirX, CoinDCX, and Unocoin were forced to freeze trading. Some paused deposits. Others shut down entirely. Investors couldnât cash out. Startups building blockchain tools for logistics, supply chains, or even land records found their bank accounts closed. One fintech founder told me his team spent six months trying to reopen a business account - only to be told, âWe donât serve crypto-related businesses.â Even if they werenât trading crypto, their tech was flagged. The RBI claimed it was protecting consumers from fraud, volatility, and money laundering. But hereâs the thing: they never showed proof. No data. No case studies. No evidence that any bank had lost money because of crypto clients. The ban was a sledgehammer - and it hit everything in its path.The Supreme Courtâs Landmark Decision
On March 4, 2020, the Supreme Court of India ruled that the RBIâs ban was unconstitutional. In a unanimous decision, the court said the central bank had violated Article 19(1)(g) - the right to carry on any profession, trade, or business. Justice Rohinton Fali Nariman wrote that the RBI had failed the âtest of proportionality.â Thatâs legal jargon for: you didnât try anything smaller before going nuclear. The court didnât say crypto was safe. It didnât say it was good. It just said: you canât shut down an entire industry without proving itâs causing real harm. And the RBI couldnât prove it. Not even close. The ruling didnât legalize crypto. It didnât make Bitcoin legal tender. But it did something just as powerful: it restored banking access. Overnight, exchanges reopened. Users could deposit rupees again. Trading volumes jumped 300% in the next three months. New platforms launched. Investors returned. And for the first time, crypto in India started feeling like a real market - not a shadow economy.What Changed After the Ban Was Lifted
Before March 2020, India had maybe 500,000 crypto users. By the end of 2020, that number hit 15 million. By 2025, itâs over 30 million - the third-largest crypto market in Asia after Japan and South Korea. Why? Because people could finally move money in and out without jumping through hoops. Exchanges started offering rupee on-ramps. KYC became smoother. Wallets got integrated with UPI. Some platforms even began offering crypto-backed loans. The ecosystem grew from just trading to lending, staking, DeFi, and NFTs. Even traditional finance took notice: Kotak Mahindra Bank started offering crypto custody services to institutional clients in 2023. ICICI Bank quietly began processing crypto-related payments for registered businesses. The RBI didnât celebrate. But it stopped blocking. After the ruling, the central bank couldnât legally refuse to serve crypto firms - unless they could prove specific harm. Thatâs a huge shift. No more blanket bans. No more fishing expeditions. Just regulation based on evidence.
The Governmentâs Half-Step: The 2021 Bill That Never Happened
While the courts opened the door, the government tried to slam it shut again. In 2021, the Ministry of Finance leaked a draft bill called the Cryptocurrency and Regulation of Official Digital Currency Bill. It proposed banning all private cryptocurrencies - mining, trading, holding, even gifting. At the same time, it planned to launch a digital rupee (CBDC) controlled by the RBI. The idea was simple: kill crypto, but keep control. But the backlash was immediate. Developers, investors, and even some economists spoke out. They pointed out that banning crypto wouldnât stop people from using it - it would just drive it underground. And if the goal was to prevent money laundering, existing AML laws already covered that. The bill was never tabled in Parliament. No vote. No debate. Just silence. By 2024, officials stopped talking about it. The government shifted focus to the digital rupee - which launched in 2023 - and quietly accepted that crypto was here to stay.Current Rules: Legal, But Not Official
As of 2025, hereâs the real state of crypto in India:- Legal to own and trade? Yes.
- Legal tender? No. You canât pay for groceries with Bitcoin.
- Banking access? Yes. Banks canât refuse service unless thereâs a proven risk.
- Taxes? Yes. 30% tax on gains, plus 1% TDS on every trade since 2022.
- Regulated? Not officially. No licensing system. No consumer protection rules. Just tax compliance.
Why the RBI Still Hates Crypto
Even after losing in court, the RBI hasnât changed its mind. Former Governor Shaktikanta Das called crypto a âthreat to monetary sovereignty.â The central bank still worries that if millions start using Bitcoin instead of rupees, it could destabilize Indiaâs economy. They fear capital flight. They fear loss of control over interest rates. They fear inflation from unregulated digital money. Those are valid concerns. But the court already said: donât ban. Regulate. The RBI hasnât taken that step. Instead, theyâve pushed for a digital rupee - a state-controlled version of crypto - and stayed silent on private digital assets. Itâs a strategy of avoidance. Let the market grow. Tax it. Ignore it. But donât help it.Whatâs Next for Crypto in India?
The next big question isnât whether crypto will survive. Itâs whether India will finally build a real regulatory framework. Right now, the country is stuck in a gray zone. Exchanges operate. Investors trade. But thereâs no clarity on things like:- Can you use crypto as collateral for loans?
- What happens if a crypto platform goes bankrupt?
- Can minors invest?
- How do you prove ownership of crypto assets in court?
What You Need to Know Today
If youâre in India and thinking about crypto:- You can legally buy, sell, and hold digital assets.
- You must pay 30% tax on profits, and 1% TDS on every trade.
- Use only registered exchanges that comply with KYC.
- Never trust platforms promising âguaranteed returns.â
- Keep your private keys safe - no one else can recover them.
Is cryptocurrency legal in India in 2025?
Yes, cryptocurrency is legal to buy, sell, and hold in India as of 2025. The Reserve Bank of Indiaâs 2018 banking ban was overturned by the Supreme Court in 2020, restoring banking access for crypto businesses. However, crypto is not legal tender - you canât use it to pay for goods or services officially.
Can I open a bank account for my crypto business in India?
Yes, banks cannot refuse to serve crypto businesses after the Supreme Courtâs 2020 ruling. However, banks may still ask for extra documentation or monitor transactions closely. As long as your business is registered, complies with KYC, and pays taxes, you should be able to open an account. Some banks, like Kotak and ICICI, now offer services to regulated crypto firms.
Do I have to pay taxes on crypto in India?
Yes. India taxes crypto gains at 30%, with no deductions allowed for losses. Additionally, a 1% TDS (Tax Deducted at Source) is applied on every crypto trade since July 2022. This applies whether you trade on Indian or foreign exchanges, as long as youâre an Indian resident.
Why did the Supreme Court overturn the RBIâs ban?
The Supreme Court ruled that the RBIâs 2018 ban violated the fundamental right to carry on any trade or business under Article 19(1)(g) of the Indian Constitution. The court found the RBI failed to prove that crypto caused actual harm to banks or the financial system. The ban was deemed disproportionate - a sledgehammer when a scalpel wouldâve worked.
Is the Indian government planning to ban crypto again?
No current plans exist to ban crypto. A 2021 draft bill proposed a ban, but it was never introduced in Parliament and has since been abandoned. The governmentâs focus has shifted to launching its own digital currency (CBDC), while leaving private crypto largely unregulated - except for taxation.
Whatâs the difference between crypto and the digital rupee?
The digital rupee is a central bank digital currency (CBDC) issued and controlled by the Reserve Bank of India. Itâs backed by the government, works like digital cash, and is tied to the Indian rupee. Cryptocurrency, like Bitcoin or Ethereum, is decentralized, not issued by any government, and its value fluctuates based on market demand. One is state-controlled money. The other is private digital money.
Cryptocurrency Guides
Edward Phuakwatana
November 14, 2025 AT 01:07Bro, this is the kind of judicial wisdom that makes me believe in institutions again đ The RBI didnât just overreach-they weaponized ambiguity. And the Supreme Court? They didnât just rule. They restored dignity to the idea of proportionality. Crypto isnât magic. But banning it because youâre scared of tech? Thatâs not regulation. Thatâs cowardice with a stamp.
Suhail Kashmiri
November 15, 2025 AT 18:30India donât need crypto. We got our own problems-poverty, corruption, education. Why are we wasting time on digital gambling? The RBI was right to block it. Now everyoneâs running around like chickens with their heads cut off buying Dogecoin. Pathetic.
Kristin LeGard
November 17, 2025 AT 02:23Let me get this straight-Indiaâs Supreme Court let crypto thrive because the RBI couldnât prove harm? LOL. Meanwhile, in the US, weâre actually regulating this shit. You think letting 30 million people trade unregulated tokens is âfreedomâ? Itâs a Ponzi waiting to explode. And now you want to call it innovation? Please. This isnât progress-itâs chaos with a startup vibe.
Arthur Coddington
November 18, 2025 AT 12:44I mean⌠what even is money anymore? Like, if I can trade a JPEG for a Lamborghini, is that real? Or are we all just living in a simulation where the RBI was the glitch? Iâm not saying cryptoâs good or bad. Iâm just saying⌠I miss when money had paper in it. And banks had janitors.
Phil Bradley
November 20, 2025 AT 09:06Man, I used to think the RBI was just being cautious. But reading this? Nah. They were scared. And fear doesnât make good policy. The fact that people kept trading anyway-through cash, P2P, offshore wallets-thatâs resilience. Thatâs human ingenuity. The court didnât legalize crypto. It recognized that people were already living in the future. And the RBI? They were still trying to lock the door after the horse was gone.
Stephanie Platis
November 20, 2025 AT 21:37Letâs be precise: the Supreme Court did not âlegalizeâ cryptocurrency. It invalidated an unlawful administrative directive. There is a difference. Furthermore, the 30% capital gains tax, coupled with the 1% TDS, constitutes a de facto regulatory framework. The absence of licensing does not equate to âno regulation.â It equates to tax collection without oversight. This is not a feature-it is a flaw.
Michelle Elizabeth
November 22, 2025 AT 05:15Itâs funny how people treat crypto like itâs the next industrial revolution. Meanwhile, Iâm over here trying to pay my rent with a rupee that still has Gandhiâs face on it. The digital rupee? Thatâs the future. Crypto? Thatâs just rich guys playing with blockchain Lego. And now Indiaâs letting it run wild? Cute. Meanwhile, my cousin in Kerala still uses cash because she doesnât trust apps.
Joy Whitenburg
November 23, 2025 AT 13:01ok so i read this whole thing and honestly?? iâm just happy people can finally bank again. like, imagine spending 6 months trying to get your money out of an exchange and then they just⌠freeze everything? thatâs not finance, thatâs trauma. also, 30% tax? yikes. but hey, at least weâre not back to the dark ages. peace out đ¤
Kylie Stavinoha
November 24, 2025 AT 15:35The Indian judiciaryâs decision reflects a profound understanding of constitutional rights in the digital age. The RBIâs blanket prohibition, while rooted in legitimate concerns about systemic risk, failed the proportionality test-a cornerstone of modern administrative law. What is fascinating is how civil society, through decentralized peer-to-peer networks, created a parallel financial infrastructure in the absence of institutional support. This is not merely a legal victory; it is a testament to the resilience of human ingenuity when constrained by bureaucratic inertia.
Diana Dodu
November 25, 2025 AT 15:50Letâs be real-this isnât about freedom. This is about the U.S. and China playing chess with Indiaâs economy. The RBI didnât ban crypto because theyâre scared of volatility. They banned it because they knew foreign actors were using it to drain capital out of India. Now? The gates are open. And guess whoâs moving in? Hedge funds. Whale wallets. Crypto bros with offshore accounts. You think your 50k INR investment matters? Youâre just fuel for their fire.
Raymond Day
November 26, 2025 AT 12:0830% tax on gains?? đ And you call that regulation? Thatâs a tax on hope. And donât get me started on the 1% TDS on every trade-thatâs like charging you to breathe. Meanwhile, the RBI sits back sipping chai while their CBDC rolls out. Real slick. You tax the little guy, give the big banks a monopoly on digital cash, and call it âmodernization.â Brilliant. đ¤Ą
Noriko Yashiro
November 26, 2025 AT 18:05Indiaâs story here is actually inspiring. People didnât wait for permission. They built. They adapted. They used WhatsApp, cash, UPI hacks-whatever worked. Thatâs the spirit of entrepreneurship. The RBIâs ban was a blunt instrument. The courtâs ruling? A scalpel. Now the government needs to pick up the scalpel and start cutting real rules-not just taxes. The future belongs to those who build, not those who block.
Atheeth Akash
November 28, 2025 AT 16:31Good to see the courts stood up for the people. RBI was acting like a scared uncle who doesn't understand tech. Now we have real traders, real innovation. Just hope the government doesn't mess it up with more taxes. Let people trade. Let them learn. We don't need hand holding. Just fair rules.
James Ragin
November 29, 2025 AT 01:38Donât be fooled. This isnât about freedom. This is about the global elite using crypto to bypass capital controls and destabilize emerging economies. The RBI knew this. The Supreme Court? They were idealistic. But what happens when a hedge fund based in Delaware uses a fake Indian address to move $500 million out of the country via Bitcoin? Who cleans up? You? Me? The middle class? This isnât progress-itâs economic colonialism with a blockchain logo.
Michael Brooks
November 30, 2025 AT 17:48The real story here isnât the ban or the ruling. Itâs the people. Millions of Indians figured out how to trade crypto without banks. They used cash, they used friends, they used apps no one had heard of. Thatâs not a flaw in the system-thatâs a feature. The RBI thought they could stop innovation by cutting off bank accounts. They didnât realize that innovation doesnât need banks. It just needs people who care. And India has a lot of those.
David Billesbach
December 1, 2025 AT 20:43Let me tell you whatâs really happening. The Indian government didnât give up on banning crypto-they just changed tactics. Now theyâre letting it grow so they can tax it into oblivion. 30%? 1% TDS? Thatâs not regulation. Thatâs extraction. And the CBDC? Thatâs the real weapon. Itâs not about controlling money-itâs about controlling behavior. Every transaction tracked. Every transfer monitored. Crypto was freedom. Now? Youâre just trading on a government-approved surveillance platform. Wake up.
Andy Purvis
December 2, 2025 AT 22:14Both sides have points. The RBI was overbearing but not wrong to worry. The court was right to demand proof. The governmentâs silence is the real problem. We need rules-not bans, not taxes as a substitute for policy. Just clear lines. Can I use crypto as collateral? Can I sue if an exchange disappears? Until then, weâre all just gambling with our savings and calling it investing.
FRANCIS JOHNSON
December 4, 2025 AT 03:49This is the moment India became a real player in the global digital economy. đ⨠The Supreme Court didnât just overturn a ban-they gave millions of young Indians permission to dream in code. The RBIâs fear? Itâs the same fear every old institution has when the future knocks. But you donât stop progress by locking the door. You build a better one. And now? Indiaâs got the keys. Letâs not waste them on taxes and silence. Letâs build. Letâs lead. Letâs show the world what decentralized finance looks like when itâs shaped by a billion dreams-not just a few bureaucrats.
Ruby Gilmartin
December 4, 2025 AT 09:09Letâs cut through the romanticism. Indiaâs crypto market is a regulatory wasteland with a tax collection system attached. Thereâs zero consumer protection, zero dispute resolution, zero liquidity safeguards. The 30% tax isnât revenue-itâs a confession of failure. The government didnât regulate. They monetized chaos. And now youâre calling this a âvictoryâ? No. This is a dumpster fire with a blockchain sticker on it.