Cryptocurrency Taxation in India (2026 Complete Guide)
Cryptocurrencies and Virtual Digital Assets (VDAs) such as Bitcoin, Ethereum, and NFTs are now fully taxable in India under the Income Tax Act.
- Flat 30% tax on crypto gains
- No loss set-off allowed
- 1% TDS under Section 194S
- Airdrops, mining, staking also taxable
What are Virtual Digital Assets (VDAs)?
Under Section 2(47A), VDAs include crypto assets, NFTs, and other blockchain-based tokens excluding fiat currency.
Is Crypto Taxable in India?
Yes. Any transfer of crypto assets is taxable. This includes selling, swapping, spending, or receiving crypto as income.
- Trading crypto
- Crypto-to-crypto exchange
- Payments in crypto
- Mining and staking rewards
- Airdrops and gifts
Tax Rate on Crypto
Income from transfer of VDAs is taxed at 30% plus cess, regardless of holding period.
Classification of Crypto Income
| Scenario | Tax Head |
|---|---|
| Long-term investment | Capital Gains |
| Frequent trading | Business Income |
| Airdrops / Mining / Gifts | Other Sources |
TDS on Crypto (Section 194S)
- 1% TDS on transfer value
- Applicable on most crypto transactions
- Threshold exemptions available for small taxpayers
Airdrops Taxation
Airdrops are taxed at fair market value on receipt. Later sale is taxed at 30%, with FMV treated as cost.
Mining Income
Mining rewards are taxed at market value on receipt. Cost of acquisition is considered zero, and expenses are not deductible.
Staking Rewards
Staking income is taxable at slab rates on receipt and 30% on sale.
Crypto Gifts
Crypto gifts above ₹50,000 are taxable unless received from specified relatives.
Example Calculation
| Particulars | Amount |
|---|---|
| Sale Value | ₹80,000 |
| Cost | ₹60,000 |
| Taxable Gain | ₹20,000 |
| Tax @ 30% | ₹6,000 |
Final Note
Crypto taxation in India is strict and evolving. Proper documentation and transaction tracking across exchanges is essential for compliance under Schedule VDA.
Cryptocurrency Taxation in India (2026 Complete Guide)
Cryptocurrencies and Virtual Digital Assets (VDAs) such as Bitcoin, Ethereum, and NFTs are now fully taxable in India under the Income Tax Act.
- Flat 30% tax on crypto gains
- No loss set-off allowed
- 1% TDS under Section 194S
- Airdrops, mining, staking also taxable
What are Virtual Digital Assets (VDAs)?
Under Section 2(47A), VDAs include crypto assets, NFTs, and other blockchain-based tokens excluding fiat currency.
Is Crypto Taxable in India?
Yes. Any transfer of crypto assets is taxable. This includes selling, swapping, spending, or receiving crypto as income.
- Trading crypto
- Crypto-to-crypto exchange
- Payments in crypto
- Mining and staking rewards
- Airdrops and gifts
Tax Rate on Crypto
Income from transfer of VDAs is taxed at 30% plus cess, regardless of holding period.
Classification of Crypto Income
| Scenario | Tax Head |
|---|---|
| Long-term investment | Capital Gains |
| Frequent trading | Business Income |
| Airdrops / Mining / Gifts | Other Sources |
TDS on Crypto (Section 194S)
- 1% TDS on transfer value
- Applicable on most crypto transactions
- Threshold exemptions available for small taxpayers
Airdrops Taxation
Airdrops are taxed at fair market value on receipt. Later sale is taxed at 30%, with FMV treated as cost.
Mining Income
Mining rewards are taxed at market value on receipt. Cost of acquisition is considered zero, and expenses are not deductible.
Staking Rewards
Staking income is taxable at slab rates on receipt and 30% on sale.
Crypto Gifts
Crypto gifts above ₹50,000 are taxable unless received from specified relatives.
Example Calculation
| Particulars | Amount |
|---|---|
| Sale Value | ₹80,000 |
| Cost | ₹60,000 |
| Taxable Gain | ₹20,000 |
| Tax @ 30% | ₹6,000 |
Final Note
Crypto taxation in India is strict and evolving. Proper documentation and transaction tracking across exchanges is essential for compliance under Schedule VDA.