Crypto Taxes India: What You Need to Know About Reporting, Penalties, and Compliance

When you trade or sell cryptocurrency in India, the government sees it as a crypto tax, a legal obligation on profits from digital asset transactions. Also known as digital asset taxation, it applies to every sale, trade, or conversion — even swapping one coin for another. Unlike stocks or real estate, crypto gains in India are taxed at a flat 30%, with no deductions for losses. That means if you bought Bitcoin at $30,000 and sold it at $50,000, you owe 30% on the $20,000 profit — no matter how long you held it.

On top of that, every crypto transaction triggers a 1% TDS, a tax deducted at source on the total value of the trade. This applies whether you’re buying or selling on an exchange like WazirX or CoinDCX. The exchange takes the 1% automatically, but you still need to report the full gain on your income tax return. And if you use a non-custodial wallet — like MetaMask or Trust Wallet — you’re still responsible. The crypto regulation India, the legal framework governing digital asset use and reporting doesn’t care where your coins are stored. If you made a profit, it’s taxable.

India’s tax rules don’t just apply to you — they’re getting smarter. By April 2027, the country will start sharing your crypto transaction data with other governments through the OECD CARF, a global standard for automatic exchange of crypto transaction information. That means if you sent crypto overseas, Indian tax authorities will know — and so will foreign ones. No offshore hiding spots left.

There’s no gray area here. Even if you didn’t cash out to rupees, trading ETH for SOL counts as a taxable event. Airdrops and staking rewards? Taxable as income when you receive them. Mining? Also taxable — though most individuals don’t do it anymore due to electricity costs. The only way to avoid penalties is to keep records: dates, amounts, values in INR at the time of each transaction. No receipts? You’re guessing your tax bill.

Some people think moving to a zero-tax country like the UAE or Georgia will fix everything. But if you’re still an Indian tax resident — meaning you lived here for more than 182 days last year — India still taxes your global crypto gains. You can’t just leave and forget. Legal relocation costs $50,000 to $250,000 and requires residency proof, not just a passport stamp.

What you’ll find below are real guides that cut through the noise. We’ve pulled together posts that explain exactly how crypto taxes work in India, what triggers reporting, how to track your trades, and why claiming losses doesn’t help you here. You’ll also see how wallet rules, exchange compliance, and international reporting are changing the game. No fluff. No theory. Just what you need to do — and what happens if you don’t.