Is cryptocurrency taxed in India?

Is Cryptocurrency Taxed in India?

Yes. In India, cryptocurrency is taxed. From the financial year 2022-23 onwards, the government has specified how virtual digital assets (VDAs), including cryptocurrency, are treated. Profits from selling or exchanging crypto are taxed at 30% (plus surcharge and cess). A 1% TDS applies on certain transfers. You must report crypto income and file your return. Keep records of all buy, sell, and swap transactions.

What Counts as Income

Gains from selling crypto for INR, swapping one crypto for another, or using crypto to pay for goods or services are typically taxable. Mining, staking, and airdrop rewards may also be taxable. Losses from one VDA cannot be set off against other income; they can only be set off against other VDA gains in the same year, and cannot be carried forward.