Crypto gifting: tax on giver, tax on receiver, exemptions

For the giver: Gifting crypto is a "transfer" under the IT Act. The giver pays 30% VDA tax on the difference between FMV at the time of gift and their cost of acquisition, even though no money was received. This surprises most crypto holders.

For the receiver: If you receive crypto as a gift worth above ₹50,000 from a non-relative, the entire FMV is taxable as "income from other sources" at slab rate under Sec 92(2)(m), Income-tax Act 2025 (old Sec 56(2)(x)). Relatives (as defined in the Act) are exempt, spouse, siblings, parents, children, siblings of spouse. Strategy: Gift crypto only to defined relatives to avoid receiver-side taxation. But giver-side tax still applies. There is no way to gift crypto completely tax-free between non-relatives.