—Guide
Crypto and VDA Taxation in India: 30% Tax, TDS and Reporting
How crypto and other virtual digital assets are taxed in India: the 30% rate, no set-off of losses, TDS on transfers, and how to report VDA in your return.
India taxes crypto and other virtual digital assets (VDAs) under a separate, strict regime. It's simpler in some ways than capital gains, and harsher in others. This guide explains how it works.
Note: this article describes the rules under the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026 (tax year 2026-27), with renumbered provisions, so check the current position for later periods.
What Counts as a VDA
Virtual digital assets include cryptocurrencies and similar tokens, and non-fungible tokens (NFTs) as notified. Indian and foreign currencies aren't VDAs.
The 30% Tax
Income from transferring a VDA is taxed at a flat 30%, plus surcharge and cess where applicable, regardless of:
- How long you held it.
- Whether you're an investor or a frequent trader.
- Your overall income level.
What You Can Deduct
Only the cost of acquiring the VDA. No other expenses — like exchange fees beyond the cost, internet or hardware — are deductible.
Losses
- A loss on one VDA can't be set off against gains from another VDA.
- VDA losses can't be set off against any other income.
- They can't be carried forward to later years.
TDS on Transfers
TDS of 1% applies on payments for the transfer of VDAs above specified thresholds. Indian exchanges generally deduct it on sales. TDS deducted appears in your Form 26AS and AIS, and is credited against your final tax.
Gifts and Airdrops
Receiving VDAs as a gift can be taxable in the recipient's hands if the value exceeds the limits for gifts, unless from specified relatives. Airdrops and mining rewards raise their own questions, and need careful treatment.
Reporting
VDA income is reported in a dedicated schedule in the return, listing each transfer with dates, cost and consideration. Foreign exchange wallets may also have to be considered in foreign asset reporting.
Getting Help
Think Filing computes VDA income from exchange statements, reconciles TDS, and reports it correctly in your return.