Crypto Taxes India 2026 – 30% Flat Tax, TDS and VDA Reporting

India introduced one of the world's strictest crypto tax regimes in 2022. If you trade crypto in India, here is everything about the 30% flat tax, 1% TDS, and filing requirements.

The 30% Flat Tax on Virtual Digital Assets

Since April 1, 2022, India taxes income from Virtual Digital Assets (VDAs) – including cryptocurrency – at a flat 30% rate (plus 4% health and education cess = effective 31.2%). This rate applies regardless of your income tax bracket or holding period.

No Deduction for Losses or Expenses

Indian VDA tax rules are particularly harsh:

• No loss offset: Crypto losses cannot be offset against profits from other cryptocurrencies or other income
• No expense deduction: Only the cost of acquisition is deductible; no trading fees, no electricity costs
• No loss carryforward: Losses from crypto cannot be carried forward to future years
• No benefit of basic exemption: The 30% rate applies from the first rupee of profit

1% TDS on Crypto Transactions

A 1% Tax Deducted at Source (TDS) applies to VDA transactions above ₹10,000 per transaction (₹50,000 for specified persons). The buyer must deduct and deposit this TDS. Indian crypto exchanges handle this automatically. TDS can be claimed as credit against your final tax liability.

What Qualifies as a VDA?

Under Indian law, VDAs include: Bitcoin, Ethereum, and all cryptocurrencies; NFTs; and other digital representations of value. Stablecoins are included. CBDCs (government digital currencies) are specifically excluded.

Staking, Mining, and Airdrop Income

Income from staking, mining, and airdrops is also taxed at 30%. There is no distinction between capital gains and income – all crypto gains face the same flat rate.

Reporting: Schedule VDA

Report crypto income in your ITR (Income Tax Return) under Schedule VDA. File by July 31 for most taxpayers (extended deadline: October 31).

Foreign Crypto Exchanges

Indian residents using foreign exchanges (Binance, OKX) are still subject to Indian tax law. Additionally, holdings on foreign exchanges may require disclosure under the Foreign Asset schedule of your ITR.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.