Answer

Capital gains, NRI, AIS/26AS · Capital Gains

Crypto / VDA: 30% Flat Tax (Section 194, old 115BBH)

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    The harshest tax treatment for any investment class in India. 30% on every rupee of profit. No deduction except cost. Loss from crypto cannot offset salary or any other income. 1% TDS on every sale. Many crypto investors do not know they must declare every trade, not just withdrawal to INR.

  2. Provisions and law

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

  3. Analysis

    What is a "transfer", more than you think: Selling crypto for INR = transfer. Swapping BTC for ETH = transfer (both legs taxable separately). Using crypto to buy goods/services = transfer at market value. Receiving crypto as mining reward = income at FMV on receipt date. Receiving as staking reward = income at FMV. Gifting crypto = transfer at FMV to giftor. Each of these is a taxable event. Cost of acquisition, only deduction allowed: What you paid to buy the crypto (in INR equivalent). Exchange fees paid at purchase = allowable. Transfer fees at sale = NOT allowed (only purchase cost). If mining: cost = electricity and hardware cost attributable to that crypto. No indexation. No depreciation. Loss rules: Loss from VDA = ₹50,000. Gain from stocks = ₹80,000. You CANNOT offset. VDA loss must go in ITR (Schedule VDA) but cannot reduce tax on stock gains.

  4. Conclusion

    1. List ALL crypto transactions in the year: buy, sell, swap, mining reward, staking, receipt as payment
    2. For each sell/swap/transfer: compute gain = sale value (INR at time of transaction) minus cost of acquisition
    3. Loss in one trade can offset gain in another VDA trade within same year only
    4. Total VDA gain: 30% tax. Zero deductions except purchase cost. Zero indexation.
    5. Check AIS, Sec 393, Income-tax Act 2025 (old Sec 194S) TDS section shows all sales on Indian exchanges. Must match your Schedule VDA
    6. Foreign exchanges: self-report all sales. Foreign exchange platform does not deduct Sec 393 (old Sec 194S), your responsibility

A Savvy can do this for you

Updated return, ITR-U, Sec 263(6) (old 139(8A))

₹2,999

Get this doneAsk a Savvy on WhatsApp

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

People also ask