\n| \n Feature<\/b><\/p>\n<\/td>\n | \n Crypto Tax (Section 115BBH)<\/b><\/p>\n<\/td>\n | \n Regular Capital Gains Tax<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Tax Rate<\/span><\/p>\n<\/td>\n | \n Flat 30% + 4% cess<\/span><\/p>\n<\/td>\n | \n STCG: slab rate; LTCG: 12.5% (equity), 20% (others)<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Holding Period Benefit<\/span><\/p>\n<\/td>\n | \n None \u2014 no short\/long distinction<\/span><\/p>\n<\/td>\n | \n Yes \u2014 LTCG rates apply after holding threshold<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Expense Deduction<\/span><\/p>\n<\/td>\n | \n Only the cost of acquisition<\/span><\/p>\n<\/td>\n | \n Brokerage, STT, and other costs allowed<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Loss Set-Off<\/span><\/p>\n<\/td>\n | \n Not allowed<\/span><\/p>\n<\/td>\n | \n STCG losses can offset STCG gains; LTCG against LTCG<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Loss Carry Forward<\/span><\/p>\n<\/td>\n | \n Not permitted<\/span><\/p>\n<\/td>\n | \n Allowed up to 8 assessment years<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Section 87A Rebate<\/span><\/p>\n<\/td>\n | \n Not applicable<\/span><\/p>\n<\/td>\n | \n Applicable on STCG (new regime)<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Applicable ITR Form<\/span><\/p>\n<\/td>\n | \n ITR-2 or ITR-3 (Schedule VDA)<\/span><\/p>\n<\/td>\n | \n ITR-2 or ITR-3 (Schedule CG)<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/span>Types of Crypto Income That Are Taxable in India<\/b><\/span><\/h2>\nThe 30% flat rate under Section 115BBH applies when you <\/span>dispose<\/span><\/i> of a VDA.<\/span><\/p>\nBut when you receive crypto income \u2014 through any of the sources, say, staking, mining, airdrops, or as a gift \u2014 the treatment is different. Let’s see the full breakdown for the virtual digital asset tax in India:<\/span><\/p>\n\n\n\n| \n Income Type\u00a0<\/b><\/p>\n<\/td>\n | \n Tax Rate at Receipt\u00a0<\/b><\/p>\n<\/td>\n | \n Tax Rate on Sale\u00a0<\/b><\/p>\n<\/td>\n | \n ITR Section\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Trading Profits (buy & sell)<\/span><\/p>\n<\/td>\n | \n N\/A \u2014 gains arise at sale<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess<\/span><\/p>\n<\/td>\n | \n Schedule VDA<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Crypto-to-Crypto Swap<\/span><\/p>\n<\/td>\n | \n N\/A<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess on each swap<\/span><\/p>\n<\/td>\n | \n Schedule VDA<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Mining Income<\/span><\/p>\n<\/td>\n | \n Slab rate (business income) on FMV at receipt<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess on any gain above FMV<\/span><\/p>\n<\/td>\n | \n PGBP \/ Other Sources<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Staking Rewards<\/span><\/p>\n<\/td>\n | \n Slab rate on FMV at receipt<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess on gain above FMV<\/span><\/p>\n<\/td>\n | \n Other Sources<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Airdrops<\/span><\/p>\n<\/td>\n | \n Slab rate on FMV at receipt<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess on any further gain<\/span><\/p>\n<\/td>\n | \n Other Sources<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Crypto Gifts (from non-relative, >\u20b950,000)<\/span><\/p>\n<\/td>\n | \n Taxable under Section 56(2)(x) at slab rate<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess on gain above FMV<\/span><\/p>\n<\/td>\n | \n Other Sources<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n NFT Sales<\/span><\/p>\n<\/td>\n | \n N\/A<\/span><\/p>\n<\/td>\n | \n 30% + 4% cess<\/span><\/p>\n<\/td>\n | \n Schedule VDA<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nKey point on gifts: Crypto received as a gift from a close relative (spouse, siblings, parents, or lineal descendants) is exempt from tax at the time of receipt. But if you sell it later, the 30% rate applies to the gain from the original cost.<\/span><\/p>\n<\/span>Calculating Crypto Tax in India \u2014 How to do?<\/b><\/span><\/h2>\nThe one formula to calculate your crypto tax liability for FY 2025-26 is listed below:\u00a0<\/span><\/p>\n\n- Taxable Gain = Sale Price \u2212 Cost of Acquisition<\/span><\/li>\n
- Tax Payable = Taxable Gain \u00d7 30% + 4% Cess on Tax<\/span><\/li>\n<\/ul>\n
The cost of acquisition is simply what you paid to buy the crypto \u2014 the purchase price in INR on the day you bought it. Nothing else (not exchange fees, not wallet costs) can be added to it.<\/span><\/p>\nWorked Example \u2014 Rahul’s Bitcoin Trade (FY 2025-26)<\/span><\/p>\n\n\n\n\n\n- Purchase: 0.5 BTC at \u20b940,00,000\/BTC in May 2025\u20b920,00,000<\/span><\/li>\n
- Sale: 0.5 BTC at \u20b960,00,000\/BTC in January 2026\u20b930,00,000<\/span><\/li>\n
- Taxable Gain (Sale Price \u2212 Cost of Acquisition)\u20b910,00,000<\/span><\/li>\n
- 30% Tax on Gain\u20b93,00,000<\/span><\/li>\n
- 4% Health & Education Cess on Tax\u20b912,000<\/span><\/li>\n
- Total Tax Liability<\/b>\u20b93,12,000<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Now, imagine Rahul also made a loss of \u20b92 lakh on an Ethereum trade in the same year. He cannot set off that \u20b92 lakh loss against the \u20b910 lakh Bitcoin gain.\u00a0<\/span><\/p>\nThe ETH loss just disappears, and hence he can’t carry it forward next year. This is where crypto tax in India FY 2025-26 differs sharply from how equity or mutual fund gains work.<\/span><\/p>\nFor multiple trades: Calculate the gain or loss on each transaction separately. Sum only the gains; losses are disregarded for tax purposes. Apply 30% to the total gains.<\/span><\/p>\n<\/span>Explaining Section 194S- TDS on Crypto Transactions<\/b><\/span><\/h2>\nOne of the biggest aspects to keep in mind if you are trading in crypto in India is the 1% TDS under Section 194S. This is not an additional tax; it is a withholding tax, that is, an advance payment of your tax liability, deducted at the transaction level.<\/span><\/p>\n | | | | | | | | | | | | | | | | |
![\"\"](\"https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2026\/06\/Pay-Tax-on-Crypto-in-India-300x158.jpg\")
<\/p>\n