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Crypto Tax in India 2026-27: 30% Tax, 1% TDS and How to Calculate It

Updated 18 October 2026 · 7 min read · By the CoinWhisk team

India taxes crypto differently from shares or mutual funds. The rules are simple once you know them, but they're stricter than most people expect. This guide covers how crypto is taxed for the 2026-27 financial year. Budget 2026 left the framework unchanged.

The short version

• 30% flat tax on profit from selling, swapping or spending crypto, plus 4% health and education cess. That's an effective 31.2% before any surcharge.
• The rate is the same for everyone. Your income slab and how long you held the coin don't matter. There's no "long-term" discount.
• Only the buying cost can be deducted. Exchange fees, internet bills and other expenses can't.
• Losses can't be set off against gains from other coins or any other income, and can't be carried forward.
• 1% TDS is deducted when you sell, once your sales in the year cross ₹50,000 (₹10,000 for some sellers). You can claim it against your final tax.
• Crypto income goes in the VDA schedule of your income tax return.

What counts as a taxable event

Crypto is taxed as a "virtual digital asset" (VDA). You owe tax when you transfer it at a profit. That includes:

• Selling crypto for rupees.
• Swapping one coin for another, for example BTC to ETH. This counts as selling BTC at its market value.
• Spending crypto on goods or services.

Simply buying crypto with rupees and holding it is not taxed. Moving coins between your own wallets isn't a sale either. Receiving crypto as a gift can be taxed in the receiver's hands if it's from someone who isn't a relative and the value is over ₹50,000 in a year.

Worked example

Say you bought 0.01 BTC for ₹62,000 and sold it later for ₹77,800.

You can try your own numbers for any coin with the crypto tax calculator. For example, use the Bitcoin tax calculator.

Why losses hurt more than you think

Suppose you made ₹50,000 profit on Solana but lost ₹30,000 on Dogecoin in the same year. With shares you'd normally pay tax on the net ₹20,000. With crypto you pay 30% on the full ₹50,000 profit, and the ₹30,000 loss simply disappears. Each transfer is looked at on its own.

This is why many Indian investors keep a careful record of each buy and sell. It's also why frequent trading can lead to a tax bill even in a year when you lost money overall.

How TDS works

When you sell on an Indian exchange, it deducts 1% of the sale value, not the profit, and deposits it with the tax department under your PAN. It shows up in your Form 26AS / AIS. When you file your return, this TDS counts towards the tax you owe. If you made a loss, the TDS can come back to you as a refund, provided your total tax liability is lower.

The 1% applies once your crypto sales in the financial year cross ₹50,000. That limit is ₹10,000 for sellers who aren't "specified persons", for example some people with business income.

Filing your return

1. Download the trade history (profit and loss report) from each exchange you used.
2. Work out the profit on each sale: sale value minus buying cost.
3. Report each transfer in the VDA schedule of your ITR.
4. Check that the TDS in your AIS matches what your exchanges show, and claim it.

Common mistakes

• Netting losses against gains. You can't.
• Deducting exchange or gas fees. Only the buying cost is allowed.
• Forgetting coin-to-coin swaps. They're taxable sales.
• Ignoring small sales. TDS and reporting still apply.

This guide is general information, not tax advice. Rules can change, and surcharge, business income and other situations can affect your tax. Check with a chartered accountant before you file.