Answer

1. F

   Facts

   India's harshest investment tax rate. 30% on every gain. No deductions allowed except purchase cost. Losses cannot offset salary or any other income. 1% TDS on every sale. Every swap, every NFT mint, every staking reward is a taxable event. Many investors do not know that swapping BTC for ETH creates a tax liability.

2. P

   Provisions and law

   • Sec 194 (old 115BBH)
   • Sec 393 (old 194S)
   • Sec 2(111) (old 2(47A))
3. A

   Analysis

   Every transfer is taxable, not just INR withdrawal: Sell crypto for INR = transfer (taxable). Swap BTC for ETH = two transfers (BTC sold at current price in INR, ETH bought at current price). Using crypto to pay for goods = transfer at FMV. Receive crypto for freelance work = income at FMV on receipt date. Mining reward = income at FMV on mining date. Staking reward = income at FMV on receipt. Gift crypto to non-relative = transfer at FMV for giftor. Each of these creates tax. No deductions except acquisition cost: Purchase price in INR = allowed. Exchange fees at PURCHASE = allowed (part of cost). Transfer fees on SALE = NOT allowed (only acquisition cost). Electricity cost for mining = allowed as cost. Interest on loan to buy crypto = NOT allowed. Depreciation = NOT allowed.

4. C

   Conclusion

   1. 1Export complete transaction history from all exchanges: buy/sell/swap history in CSV
   2. 2Identify every taxable event: sale, swap, mining reward, staking reward, payment received in crypto
   3. 3For each: calculate gain = INR value at sale date minus INR cost at purchase date
   4. 4Net VDA gains/losses within same year (crypto losses can offset other crypto gains)
   5. 5Apply 30% on net VDA income. No deductions except acquisition cost.
   6. 6Check AIS for Sec 393, Income-tax Act 2025 (old Sec 194S) TDS credit from Indian exchanges, this reduces final tax payable

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.