India Crypto Tax: What You Need to Know

When dealing with India crypto tax, the set of rules that determine how crypto gains are taxed for Indian residents. Also known as crypto tax in India, it governs everything from daily trading profits to long‑term holdings and applies across exchanges, wallets, and DeFi platforms.

The broader concept of cryptocurrency taxation, how tax authorities treat digital assets for income and capital‑gain purposes, directly shapes the India crypto tax landscape. Under the Indian tax law, especially the Income Tax Act and GST provisions, crypto transactions are classified as either business income or capital gains depending on frequency, intent, and holding period. This classification decides whether you pay short‑term rates (up to 30%) or long‑term rates (20% plus surcharge). Understanding these distinctions helps you avoid surprise notices from the tax department.

Key Elements That Influence Your Tax Liability

First, record‑keeping is a must. Every buy, sell, swap, or staking reward needs a timestamp, price in INR, and counterpart details. Apps that export CSV files from major crypto exchanges in India, platforms like WazirX, CoinDCX, and ZebPay, make this easier. Second, the GST angle: services such as token swaps are treated as supply of services, attracting 18% GST if you’re a registered trader. Third, the concept of self‑assessment: the tax authority expects you to calculate and file your crypto gains in the annual return, usually under Schedule CG for capital gains or Schedule BP for business income.

Practical compliance steps include: (1) syncing exchange data with a spreadsheet or tax‑software tool; (2) separating short‑term trades (held < 36 days) from long‑term holdings; (3) applying the correct rate based on your classification; and (4) filing Form 26AS to verify TDS (if any) on crypto‑related services. Missing any of these points can trigger a notice, which often leads to penalties and interest.

Another layer is the upcoming regulatory updates. The Finance Ministry has hinted at a dedicated crypto tax framework that could introduce a flat 30% rate on all crypto income and a 0.1% transaction levy. While the bill is still in draft, staying aware of drafts and public consultations lets you adapt your strategy before the rules become mandatory.

For those who earn crypto through staking or DeFi yield, the income is treated as “other income” and taxed at your slab rate. The same applies to airdrops: the fair market value on the day you receive the tokens is your taxable income. If you later sell those tokens, you calculate capital gains on the difference between sale price and the original fair market value.

Finally, consider professional advice. A chartered accountant familiar with digital assets can help you structure trades, claim allowable deductions (like transaction fees), and ensure that your filing aligns with the latest guidance from the Income Tax Department.

Below you’ll find a curated list of articles that break down each of these topics in detail—from how to calculate mining income to what the latest exchange reviews say about compliance features. Dive in to get step‑by‑step guidance, real‑world examples, and tools that make India crypto tax reporting painless.