26/08/2026
Crypto & VDA Tax Rules in India 🇮🇳
📌 Cryptocurrency / Virtual Digital Assets (VDAs) are taxable in India. Here are the key rules every crypto investor should know:
💰 30% Tax on Profits
Income from transfer of VDAs is generally taxed at 30%, plus applicable surcharge and cess.
🚫 No Deduction for Most Expenses
Except the cost of acquisition, deductions against VDA transfer income are generally not allowed.
📉 Loss Set-Off Restrictions
Loss from one VDA transaction generally cannot be set off against income from another VDA or other sources, and cannot be carried forward.
💸 1% TDS under Section 194S
TDS may apply on consideration paid for transfer of VDAs, subject to applicable conditions and thresholds.
📊 Keep Proper Records
Maintain transaction history, purchase cost, sale value, dates, wallet/exchange statements and TDS details for accurate tax reporting.
⚠️ Important: Crypto tax treatment can depend on the nature and structure of the transaction. Always verify the applicable provisions before filing your ITR.
📲 Need help with Crypto/VDA taxation or ITR filing?
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