Crypto Taxation India: What You Need to Know in 2025

When you trade or hold cryptocurrency, a digital asset recognized by India’s tax authority as property, not currency. Also known as digital assets, it’s treated like stocks or gold for tax purposes in India. If you bought Bitcoin in 2023 and sold it in 2025 for a profit, that gain is taxable—even if you never cashed out into rupees. The same goes for swapping one coin for another, earning interest on DeFi platforms, or receiving crypto as payment. India doesn’t care if you used a wallet or an exchange; if you made a move, the taxman wants to know.

The Indian crypto tax rules, a flat 30% tax on all crypto gains since April 2022, with no deductions for losses. Also known as crypto income tax India, this rule applies whether you made ₹500 or ₹5 lakh. You can’t offset losses from one coin against gains from another, unlike stocks. And if you earn crypto from staking, airdrops, or mining, it’s treated as income at fair market value on the day you received it—taxed at your normal slab rate. On top of that, a 1% TDS kicks in on every trade over ₹10,000, whether you’re buying or selling. That’s not a refundable tax; it’s a deduction upfront, and you still owe the full 30% on your net profit. Many people think holding crypto long-term avoids tax, but that’s false. India doesn’t have a capital gains exemption like the U.S. Even if you hold for five years, you still pay 30%. And if you send crypto to a friend as a gift? That’s taxable income for the receiver.

The crypto reporting India, requires every taxpayer to disclose crypto holdings in their annual tax return under Schedule VDA (Virtual Digital Assets). Also known as crypto tax reporting India, this isn’t optional. The Income Tax Department now cross-checks data from exchanges like WazirX, CoinSwitch, and ZebPay. If your wallet address shows large transfers but your return says zero, you’ll get a notice. Penalties for underreporting can hit 200% of the tax due, plus interest. No one’s getting away with hiding crypto anymore. You don’t need to track every single transaction manually, but you must know your cost basis and sale price for each asset. Use free tools like Koinly or CoinTracker to auto-import your history from wallets and exchanges. Keep screenshots of trade confirmations and wallet addresses. If you’re unsure, save your transaction IDs and dates—they’re your proof.

What’s missing from most guides? The gray areas. What if you lost crypto in a hack? Can’t deduct it. What if you mined crypto on your home PC? Still taxable. What if you received crypto as salary? Treated as income, and your employer should withhold tax. What if you used crypto to buy a phone? That’s a taxable disposal—you’ve triggered a capital gain. Every interaction counts.

Below, you’ll find real-world examples of how Indian crypto owners are navigating these rules in 2025—from small traders to early adopters who got caught off guard. Some learned the hard way. Others found ways to stay compliant without paying more than they owe. Whether you’re just starting out or have been holding since 2021, the posts here cut through the noise and show you exactly what matters now.