India Crypto Tax 2026: What You Actually Owe
For Indian users, this guide explains the 30% flat tax on gains, the 1% TDS on transfers, why losses cannot be set off, and how the FIU registration requirement affects exchanges.
India has one of the world's harshest crypto tax regimes. Since 2022, gains on Virtual Digital Assets are taxed at a flat 30% (plus cess), a 1% TDS is deducted on transfers under Section 194S, and — crucially — losses on one crypto cannot be set off against gains on another. This guide explains the rules clearly and what you can still control.
Ringkasan
The key numbers for Indian users are a 30% flat tax on crypto gains (plus 4% cess, so effectively about 31.2%) and a 1% TDS on transfers above the threshold, with no loss set-off between assets. The tax is the same on every exchange, so the only cost you can still control is your trading fee.
Hal yang penting di sini
The two numbers: 30% and 1% TDS
Under the VDA (Virtual Digital Asset) rules, gains from transferring crypto are taxed at a flat 30%, and a 4% cess is added on top, bringing the effective rate to about 31.2%. Separately, a 1% TDS is deducted on the full transfer consideration above the threshold (Section 194S). Both apply regardless of which exchange you use.
The 30% applies to gains (sale price minus cost of acquisition), but there is no loss set-off: if you lose on one coin, you cannot offset that against a gain on another, and losses cannot be carried forward. This makes tax planning harder and makes every fee you can avoid matter more.
Compliance: FIU registration and clean records
Offshore exchanges serving Indian users are expected to register with the FIU (Financial Intelligence Unit) under PMLA. Use UPI or bank transfer for INR on-ramps, keep clean records of every transfer for the 30% + TDS filing, and prefer FIU-registered platforms so reporting stays compliant.
India's crypto tax is fixed: 30% (plus cess) on gains, 1% TDS on transfers, and no loss set-off. Since it applies identically on every exchange, the one cost you can still reduce is your trading fee — and a referral rebate on a global exchange is the practical way to do it while keeping your records clean.
Pertanyaan umum
How much crypto tax do I pay in India?
A flat 30% on gains (plus 4% cess, about 31.2% effective), and a 1% TDS on transfers above the threshold under Section 194S.
Can I set off crypto losses against gains?
No. Losses on one crypto cannot be set off against gains on another, and they cannot be carried forward to future years.
Does the exchange I use change my tax?
No. The 30% and 1% TDS apply identically on any exchange. Your exchange choice affects only fees and spreads.