Crypto Tax India: What You Need to Know About Reporting Crypto Gains in 2025

When you buy, sell, or trade cryptocurrency in India, the crypto tax India, the legal requirement to report and pay taxes on cryptocurrency profits under Indian income tax laws. Also known as cryptocurrency gains tax, it applies to every trade, swap, or sale—even if you didn’t convert to rupees. The government doesn’t care if you used Binance, WazirX, or a decentralized exchange. If you made a profit, you owe tax.

The Indian crypto regulations, the official rules set by the Income Tax Department and Reserve Bank of India governing digital asset ownership, trading, and taxation treat crypto like property, not currency. That means every time you sell Bitcoin for INR, swap Ethereum for Solana, or even use crypto to buy a coffee, it’s a taxable event. You’re not just reporting income—you’re tracking cost basis, date of purchase, and sale value for every single transaction. No exceptions. No gray areas.

Since 2022, the tax rate on crypto gains is a flat 30%, with no deductions for losses. That’s higher than most other investments. And if you earn crypto from airdrops, staking, or mining? That’s treated as income and taxed at your regular slab rate. Plus, there’s a 1% TDS on every crypto trade over ₹50,000 (or ₹10,000 in a single day). You can’t avoid it by using foreign exchanges. The Indian tax department now demands transaction data from Indian-linked wallets and exchanges. If you didn’t keep records, you’re already behind.

People think they can hide behind anonymity or ignore small trades. But the system doesn’t work that way. The crypto gains tax India, the specific tax obligation on profits from selling or exchanging digital assets within India is enforced through data matching—banks, exchanges, and wallet providers report suspicious activity. Even if you never filed a return, the government has your trail. And penalties? Up to 200% of the tax owed, plus interest.

What does this mean for you? If you’ve traded crypto in India since 2022, you need to file a tax return. You need to know which transactions count. You need to track your cost basis. You need to understand how staking rewards, NFT sales, and DeFi swaps are treated. And you need to do it before the deadline. This isn’t about getting rich—it’s about staying legal.

Below, you’ll find real cases, scams, and regulatory updates that show exactly how crypto tax India works in practice. Not theory. Not guesses. Real examples from people who got caught, avoided penalties, or lost everything because they didn’t know the rules. Some posts expose fake airdrops that tricked users into giving up private keys. Others break down how the government tracks cross-border transactions. A few even show how Indian traders are using legal loopholes to reduce exposure. You won’t find fluff here. Just what you need to stay compliant—and safe.