India Crypto Tax: What You Need to Know About 30% Gains, TDS, and New Reporting Rules

When you trade crypto in India, a country with over 100 million crypto users despite heavy regulation. Also known as the world’s largest crypto adoption market under strict tax rules, it’s where people buy Bitcoin not for speculation, but to protect savings from inflation and send money abroad cheaply. But if you make a profit, the government takes 30%—no deductions, no offsets, no exceptions. That’s the VDA tax, a flat 30% tax on virtual digital asset gains introduced in 2022. It’s not capital gains—it’s a flat rate, like income tax on gambling winnings. On top of that, every trade triggers a 1% TDS, Tax Deducted at Source, automatically withheld by exchanges when you sell or trade. This isn’t optional—it’s built into every transaction, whether you’re swapping ETH for USDT or selling SOL for INR. And if you pay fees to use a platform? Those are taxed at 18% GST. No other country combines these three layers so tightly.

But India isn’t stopping there. Starting in April 2027, the country will implement the OECD Crypto-Asset Reporting Framework, a global system that automatically shares crypto transaction data between governments. This means your exchange will report your trades to Indian tax authorities, who will then share them with other countries—closing the door on offshore tax evasion. It’s not about punishing users. It’s about making crypto transparent. The government knows people are using it. They just want to know how much you’re making and where it’s going.

So what’s a user supposed to do? You can’t avoid the tax. But you can understand it. You can track your trades. You can plan your buys and sells around the TDS deductions. And if your holdings are large enough, some are legally relocating to places like the UAE or Georgia—where crypto gains are tax-free. The posts below break down exactly how these rules hit real people: how much TDS you actually lose on a $1,000 trade, why the 30% tax makes long-term holding feel pointless, and how the new OECD rules will change everything by 2027. You’ll also find real examples of how Indian traders are adapting, what exchanges are doing to comply, and why some are walking away—not because they don’t believe in crypto, but because the cost is just too high.