Crypto profits in India are taxed at a flat 30% with no deductions, plus 4% cess and surcharge. A separate 1% TDS applies on every crypto sale above ₹10,000. Losses cannot offset other income or even other crypto gains. This calculator computes the tax on your virtual digital asset (VDA) transactions accurately.
What is Crypto Tax?
Since FY 2022-23, India has a dedicated crypto tax regime under Section 115BBH of the Income Tax Act. Profits from transfer of Virtual Digital Assets (VDA) — cryptocurrencies, NFTs, and similar — are taxed at a flat 30% regardless of your income slab. No deductions are allowed except cost of acquisition. Holding period doesn't matter — there's no LTCG/STCG distinction for crypto.
Additionally, Section 194S mandates 1% TDS on every VDA sale above ₹10,000 (₹50,000 for specified persons). This TDS is deducted by the exchange or counterparty and credited to your PAN. You can claim it back as part of your annual filing.
Critically, crypto losses cannot offset gains in any other head — not salary, not capital gains from stocks, not even gains from another crypto. Loss in one crypto is just lost; you can't carry it forward to set off against future gains either.
How crypto tax is calculated
Step 1 — Compute gain on each VDA transfer. Gain = Sale price − Cost of acquisition. Only direct acquisition cost is allowed; no transaction fees, no cost of mining infrastructure.
Step 2 — Sum all positive gains (ignore losses). This is your taxable VDA income.
Step 3 — Apply 30% flat rate + 4% health and education cess + applicable surcharge. Total effective rate at no surcharge: 31.2%. With max surcharge (37% on income above ₹5cr in old regime): 42.74%.
Step 4 — Adjust 1% TDS deducted at sale. TDS already paid is credited; if total TDS exceeds final liability, refund is due.
- Cost
- Acquisition cost—what you paid in INR; no deductions for fees or other expenses
- Sale
- Sale proceeds—INR received on sale; no offset for selling fees
How to use this calculator
Enter total sale proceeds across all VDA transactions
Sum of all crypto sales, NFT transfers, and similar VDA exits during the financial year. Use exchange-provided P&L statements where available.
Enter total cost of acquisition
Sum of what you paid (in INR) to acquire the VDAs. Excludes transaction fees, gas fees, mining costs, hardware — nothing else is deductible. Only direct purchase cost.
Enter total TDS already deducted (Section 194S)
Exchanges deduct 1% TDS on every sale above ₹10K. Sum the TDS shown on your annual exchange statement or Form 26AS. This amount is credited against your final tax liability.
Read the tax payable
Calculator shows gross tax at 30% + cess, TDS already deducted, and net payable (or refund). Net is positive: pay as self-assessment tax. Negative: refund expected when filing.
When to use it
Casual investor with profitable trades
₹1 lakh invested grew to ₹3 lakh; sold for ₹2 lakh gain. Tax = ₹62,400 (31.2% effective). 1% TDS during sales = ₹3,000 already deducted. Net ₹59,400 owed at filing.
Active trader with mixed gains and losses
₹5 lakh gain on Bitcoin, ₹3 lakh loss on Ethereum. Tax is on full ₹5 lakh (loss ignored) = ₹1.56 lakh. The loss is permanently lost — not carried forward, not set off against gains. Major lesson: crypto trading is tax-disadvantaged.
Receiving crypto as salary or gift
Crypto received as salary is taxed at slab as salary income (FMV in INR on receipt date). As gift above ₹50K, taxed at slab under Section 56. Subsequent sale generates capital-gains-style 30% tax on additional gain over the receipt-date FMV.
Common mistakes to avoid
Trying to offset crypto losses against gains
Section 115BBH explicitly disallows any loss set-off against VDA gains, and any loss carry-forward. The loss is absolute. If you trade actively and incur losses, accept them and don't claim offsets.
Forgetting 1% TDS during sale
Indian crypto exchanges are mandated to deduct 1% TDS. P2P traders or international exchange users must deduct it themselves under Section 194S. Ignoring this risks penalties.
Misclassifying crypto-to-crypto trades as non-taxable
Every transfer of one crypto for another is a taxable event in India, even without converting to INR. Each leg generates a gain or loss valued at INR market rate at transaction time.
Adding gas fees and transaction costs to cost basis
Only direct INR acquisition cost is deductible. Gas fees, network fees, exchange fees — none are deductible. This makes high-frequency crypto trading exceptionally tax-disadvantaged.
Frequently asked questions
What's the tax rate on crypto in India?
Can I offset crypto losses against gains?
What is the 1% TDS on crypto sales?
Are gas fees and exchange fees deductible?
Is crypto-to-crypto trading taxable?
What about staking rewards, airdrops, and mining?
References
- Section 115BBH — Tax on VDAs— Income Tax Department
- Section 194S — 1% TDS on VDA transfers— Income Tax Department