Calculate your cryptocurrency tax liability under India's 30% flat tax on VDA gains (Section 115BBH). Enter buy and sell prices to see profit, tax, TDS credit, and net return.
Section 115BBH · FY 2026-27 · India
Number of coins or tokens traded. Supports decimals.
1% TDS deducted by exchange under Section 194S. Enter 0 if none.
Crypto tax liability
₹21,840
30% flat tax + 4% cess on ₹70,000 gain
As per Section 115BBH of Finance Act 2022. No deduction or set-off of any loss is allowed against VDA income. 1% TDS applies on transfers above the threshold under Section 194S. Always verify with a qualified tax professional before filing.
India taxes cryptocurrency gains at a flat 30% with no deductions or loss set-off allowed. Whether you trade Bitcoin, Ethereum, or any other virtual digital asset (VDA), every profitable transaction triggers this tax. On top of the 30% tax, a 4% health and education cess applies, bringing the effective rate to 31.2%. Exchanges also deduct 1% TDS on transfers above the threshold under Section 194S, which you can claim as a credit when you file your return. This crypto tax calculator applies these rules to your trade, showing the exact tax, cess, TDS adjustment, and net proceeds.
The tax on cryptocurrency in India is straightforward but strict. Under Section 115BBH of the Income Tax Act (introduced by the Finance Act 2022), any income from the transfer of a Virtual Digital Asset is taxed at a flat 30%, regardless of your income slab. No deduction is allowed except the cost of acquisition.
Tax = (Sell value − Cost of acquisition) × 30%
Cess = Tax × 4%
Total tax = Tax + Cess
No loss set-off: If you sell at a loss, you cannot set it off against any other income, including gains from other crypto trades. Each transaction is taxed independently.
1% TDS (Section 194S): Crypto exchanges deduct 1% TDS on transfers above specified thresholds. This TDS is not an additional tax but a prepaid credit you claim against your total tax liability when filing your ITR.
Gifts and airdrops: If you receive crypto as a gift or airdrop, the cost of acquisition is zero. The entire fair market value at the time of transfer is taxable at 30%.
Cryptocurrency gains are taxed at a flat 30% under Section 115BBH of the Income Tax Act, irrespective of your income slab. An additional 4% health and education cess applies on the tax amount, making the effective rate 31.2%. No deduction is allowed except the cost of acquisition (what you paid to buy the crypto).
No. Under Section 115BBH, losses from the transfer of virtual digital assets (VDAs) cannot be set off against any other income, including gains from other crypto transactions. Each profitable crypto transaction is taxed independently. Unlike capital gains on shares, there is no carry-forward of crypto losses either.
Section 194S requires buyers or exchanges to deduct 1% TDS on the transfer of virtual digital assets above specified thresholds (Rs 50,000 per year for specified persons, Rs 10,000 for others). This TDS is not an additional tax. It is a prepaid credit that reduces your final tax liability when you file your income tax return.
Swapping one cryptocurrency for another (for example, exchanging Bitcoin for Ethereum) is treated as a transfer and is a taxable event. The profit on the outgoing crypto (its fair market value at the time of swap minus your purchase cost) is taxed at 30% plus cess. Both sides of the swap are effectively taxable events.
Yes. When you receive crypto as a gift or airdrop, the cost of acquisition is treated as zero. If the aggregate value of all gifts (including crypto) exceeds Rs 50,000 in a financial year, the entire amount is taxable under income from other sources. When you later sell the gifted crypto, the full sale value is taxable at 30% since your cost is zero.
Crypto gains should be reported in ITR-2 or ITR-3 under 'Income from Virtual Digital Assets' (Schedule VDA). If you have salary income and crypto gains, use ITR-2. If you have business income along with crypto gains, use ITR-3. Report each transaction separately in Schedule VDA with the date, type, quantity, sale value, and cost of acquisition.
Yes. Income from mining cryptocurrency is taxable. The income is treated as business income or income from other sources depending on the scale and nature of operations. The cost of mining (electricity, hardware) may be deductible as business expenses. When you later sell the mined crypto, the 30% tax under Section 115BBH applies on the profit.
The cost of acquisition is the price you originally paid to buy the cryptocurrency, including any transaction fees or brokerage paid at the time of purchase. For crypto received through mining, it is the fair market value on the date of receipt. For gifted crypto, the cost is treated as zero. No indexation benefit is available for crypto assets.
The effective rate is 31.2%: 30% flat tax under Section 115BBH plus 4% health and education cess on the tax amount. If surcharge applies to your total income (income above Rs 50 lakh), the effective rate can be even higher. For most individual traders, 31.2% is the practical rate.
No. If you buy and hold cryptocurrency without selling or transferring it, there is no tax event. Tax under Section 115BBH applies only on the transfer of a virtual digital asset. However, if you earn staking rewards or interest on crypto, that income may be taxable when received.
The Finance Act 2022 introduced Section 115BBH, which taxes any income from the transfer of Virtual Digital Assets (VDAs) at a flat rate of 30%. This covers all cryptocurrencies, NFTs, and any other digital assets defined under Section 2(47A) of the Income Tax Act.
The 30% rate applies regardless of your income tax slab. Even if your total income falls in the 5% or 20% slab, crypto gains are always taxed at 30%. The only deduction allowed is the cost of acquisition: what you paid to buy the crypto. No deduction for transaction fees, infrastructure costs, or any other expense is permitted.
Section 194S mandates a 1% Tax Deducted at Source on the transfer of virtual digital assets. The buyer (or exchange acting on behalf of the buyer) must deduct this TDS before crediting the sale proceeds to the seller.
The TDS threshold is Rs 50,000 per financial year for specified persons (individuals and HUFs whose turnover or gross receipts do not exceed the specified limit) and Rs 10,000 for all others. The deducted TDS appears in your Form 26AS and AIS, and you claim it as a credit against your total tax liability when filing your ITR.
One of the strictest aspects of India's crypto tax regime is the prohibition on loss set-off. If you sell Bitcoin at a loss and Ethereum at a profit in the same year, you cannot offset the Bitcoin loss against the Ethereum profit. Each profitable transaction is taxed at 30% independently.
Furthermore, crypto losses cannot be set off against any other head of income, including salary, business income, or capital gains from shares or property. There is also no provision to carry forward crypto losses to future years. This makes India's crypto tax treatment significantly stricter than the capital gains rules for traditional assets.
Since FY 2022-23, the ITR forms include Schedule VDA specifically for reporting income from virtual digital assets. You must report each crypto transaction separately with the following details:
Use ITR-2 if you have salary and crypto income. Use ITR-3 if you also have business income. Ensure your TDS credits from Form 26AS match the TDS deducted by exchanges. File before the due date (usually 31 July for non-audit cases) to avoid interest and penalties.
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