Do I pay tax when buying crypto?

Do I Pay Tax When Buying Crypto?

No. When you buy cryptocurrency with INR (or other fiat), you are not earning income at that moment. Tax applies when you "transfer" the VDA: when you sell for INR, swap for another crypto, gift, or use it as payment. At that point you calculate gain (sale/value minus cost) and pay tax on the gain. So buying itself is not taxable, but you must keep records of the buy (date, amount, cost) so you can compute gain when you sell.