How To Calculate Tax On Cryptocurrency In India

Cryptocurrency gains in India are taxed at a flat rate of 30% under Section 115BBH.

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A 1% Tax Deducted at Source (TDS) applies to all crypto transactions exceeding ₹50,000

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Report all crypto transactions in your tax returns, including gains and losses from trades.

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Calculate capital gains by subtracting the purchase price from the selling price of crypto.

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Losses from crypto trading cannot offset gains from other assets; each is taxed separately.

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Staking and mining rewards are taxed as income at your applicable tax rate upon receipt.

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Airdrops and hard forks are considered income; tax at your applicable rate when sold.

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Gifts of cryptocurrency are taxable for the recipient, except for close family members.

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Maintain detailed records of all transactions for accurate reporting and potential audits.

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Use crypto tax calculators to simplify your calculations and ensure compliance with regulations.

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