Crypto Tax: 30% Flat, No Deductions (Section 194, old 115BBH)

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.

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.