Profits made from selling cryptocurrency in India are taxed at a flat rate of 30% under Section 115BBH of the Income Tax Act. Additionally, a 4% cess is applied, making the effective tax rate 31.2%. You cannot claim any deductions except the cost of acquisition. Also, 1% TDS is deducted on crypto transactions exceeding ₹10,000 in a financial year.

How Much Tax Do You Pay on Crypto Profits in India?

You pay 30% tax on any profit you make from selling cryptocurrency. This tax is fixed and applies whether you hold the crypto for short or long term. In addition, you pay 4% health and education cess on the tax amount, bringing the total to 31.2%.

Is There Any TDS on Crypto Transactions?

Yes, 1% TDS is deducted on cryptocurrency transactions if the total value exceeds ₹10,000 in a financial year. For specified persons like individuals without business income, the limit is ₹50,000. The TDS is deducted by the exchange at the time of transaction and reported in Form 26AS.

Can You Claim Any Deductions on Crypto Income?

No, you cannot claim any deductions or expenses other than the cost of acquisition while calculating crypto gains. This means charges like transaction fees, electricity cost (for mining), or internet bills are not deductible under Indian tax law for crypto profits.

Is Crypto Loss Adjustable Against Other Income?

No, if you incur a loss from cryptocurrency trading, you cannot set it off against any other income. Crypto losses cannot be carried forward or adjusted with stock market gains, salary, business income, or even other crypto profits. Losses are simply ignored under the current tax rule.

Which ITR Form to Use for Crypto Income?

You should report your crypto income under the head “Income from Other Sources” or “Capital Gains,” depending on how you're trading. Usually, crypto profits are shown under Section 115BBH as Other Income. Use ITR-2 or ITR-3 depending on your other sources of income. Always consult a tax expert for the correct filing.