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

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.

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.