Tax on Cryptocurrency in India#
Tax Rules (From FY 2026-27)#
- Virtual Digital Assets (VDA) defined
- 30% tax on transfer
- No deduction for expense
- 1% TDS (from July 2023)
TDS on Crypto#
| Transaction | TDS Rate |
|---|---|
| Below ₹50,000 | 1% |
| Above ₹50,000 | 1% |
| Specified person | 5% |
Loss Set-off#
- Cannot set off against other income
- Cannot carry forward
Reporting in ITR#
- Show in ITR
- Schedule VDA for reporting
- 30% tax on gains
Examples#
Profit: ₹1,00,000#
- Tax: ₹30,000
- No expense deduction
Loss: ₹50,000#
- Cannot set off
- Cannot carry forward
Conclusion#
Crypto profits taxed heavily in India.