Crypto Tax in India: The Ultimate Guide for 2026

Income from the transfer of Virtual Digital Assets is taxed at a flat 30%. Other than the cost of acquisition, no deduction is permitted.

VDA losses cannot be set off against any income, and such losses cannot be carried forward. These rules apply whether you treat VDAs as investments or trading inventory.

If you receive crypto through activities like mining, staking, or as payment, that receipt may be taxed under the regular provisions for business or other income. When those tokens are later transferred, Section 115BBH applies to the transfer, with cost of acquisition rules such as “nil” crypto cost basis for self-generated coins where applicable. Maintain clear records so each later transfer can be reported correctly.

A 1% TDS generally applies to consideration paid for the transfer of a VDA. On Indian crypto exchange trades, the exchange or broker typically facilitates deduction and deposit; in peer-to-peer transactions, the buyer may be responsible for deducting and depositing TDS.

TDS applies once annual consideration thresholds are crossed. Broadly, the threshold is ₹50,000 in a financial year for specified persons and ₹10,000 for others. TDS is a credit against your final tax, so you still compute the 30% tax on VDA transfer income when filing your return.

Disclose VDA transfers in Schedule VDA of your ITR. You will enter the acquisition date, transfer date, consideration, cost of acquisition, and resulting income under the special regime. Ensure any TDS credits on VDA transfers appear in your tax credit statements and are claimed in your return.

Do not net VDA profits and losses to reduce income. The law does not allow set-off of losses from one VDA against income from another VDA or other sources. Keep exchange CSVs, on-chain proofs, and INR valuations to support your entries.

Here’s a breakdown of how to file your crypto taxes in India. Look to official sources for further guidance, as steps and regulations may change year over year.

Step 1: Log in to the e-Filing Portal

Access your account linked to your PAN and verify your profile, bank details, and contact information.

Step 2: Start a new ITR filing

Select the relevant assessment year and choose online or offline filing as applicable.

Step 3: Select the correct ITR form

Choose the ITR that matches your income profile. Most salaried filers with VDA activity use ITR-2; those with business or professional income typically use ITR-3. Confirm that Schedule VDA is available in the form you select.

Step 4: Choose filing type and reason

Pick “Original,” “Revised,” “Belated,” or “Updated” as appropriate for your situation.

Step 5: Fill in personal and income details

Complete personal information, residential status, and all applicable income heads and deductions unrelated to VDA.

Step 6: Declare crypto transactions (Schedule VDA)

Enter each transfer with dates, consideration, cost of acquisition, and computed income. Match any 1% TDS credits and claim them in the return.

Step 7: Declare other related income (optional)

Report interest, salary, rental income, and other items under the correct schedules.

Step 8: Avoid using Capital Gains Schedule (CG) for crypto

Use Schedule VDA for VDA transfers. Do not report them under the standard capital gains schedule.

Step 9: Preview tax computation

Validate the return, review total crypto tax and credits, and complete e-verification via an approved method.

India’s financial year runs from April 1st to March 31st. For most individuals not subject to audit, the original ITR due date is typically at the end of July following the close of the financial year.

Deadlines can be extended by notification, and belated, revised, or updated return options may be available within prescribed windows, so always confirm the currently notified dates before filing.

At the time of writing, the 30% tax on income from VDA transfers and the 1% TDS framework remain in effect, and VDA reporting continues via Schedule VDA in eligible ITR forms.

Monitor the annual Finance Bill and CBDT notifications for any changes to rates, thresholds, or reporting requirements.