India Crypto Tax Compliance: What You Need to Know About 30% Tax, TDS, and GST

When it comes to India crypto tax compliance, the set of rules governing how Indian residents report, pay taxes on, and track digital asset transactions. Also known as VDA tax rules, it’s not about banning crypto—it’s about making sure every trade, swap, or transfer leaves a paper trail. Unlike countries that treat crypto like property or currency, India taxes it like a luxury good: 30% on profits, no deductions, no losses offset, and a 1% TDS slapped on every transaction—even if you’re breaking even.

This system hits hard because it doesn’t care if you’re holding for years or day-trading. If you bought Bitcoin at $30,000 and sold at $35,000, you owe 30% on that $5,000 gain—even if you used the money to buy groceries. And that’s not all. Every time you trade one coin for another, or buy crypto with INR, the exchange must withhold 1% as TDS. That’s right: even if you’re just swapping USDT for SOL, the platform takes 1% before you even see your tokens. On top of that, 18% GST applies to all trading fees, staking rewards, and even crypto ATM charges. It’s not just tax—it’s tax on top of tax on top of tax.

And yet, India still leads the world in crypto adoption. Why? Because for millions, crypto isn’t speculation—it’s survival. Remittances from the Gulf, inflation protection against a weakening rupee, and access to global DeFi platforms that banks won’t touch make crypto worth the headache. People aren’t ignoring the rules—they’re adapting. They track every transaction manually, use non-custodial wallets to avoid exchange reporting, and sometimes even shift small amounts to friends or family to stay under the radar. But here’s the catch: the government doesn’t need you to confess. They’re already tracking wallets, exchange data, and blockchain addresses. If you’re holding crypto in India, you’re already in the system.

There’s no gray area here. The 30% crypto tax India, the flat tax rate applied to all capital gains from virtual digital assets under Indian law isn’t going away. The TDS on crypto India, the 1% tax deducted at source by exchanges on every crypto transaction in India is baked into every app. And the VDA tax India, the official term used by the Indian government for taxes on virtual digital assets is now part of every tax return form. What you can control is how you prepare. Keep records. Don’t assume your exchange will do it for you. Know which wallets you own. Understand what counts as income versus transfer. And don’t fall for fake advice saying you can avoid it—because if you’re in India, you can’t.

Below, you’ll find real breakdowns of how these rules play out in practice—what actually gets taxed, which exchanges report what, how non-custodial wallets fit in, and why some people are quietly moving assets overseas. No fluff. No theory. Just what works—and what gets you flagged.