When you buy, sell, or earn crypto taxation India, the legal requirement to report and pay taxes on cryptocurrency gains under Indian income tax rules. Also known as digital asset taxation, it applies to everyone who holds or trades Bitcoin, Ethereum, or any other token — even if you never cashed out to rupees. The Indian government doesn’t treat crypto like stocks or gold. It’s classified as a virtual digital asset, and every single trade, swap, or airdrop is taxable.
Here’s the hard truth: if you bought Bitcoin in 2023 and sold it in 2025 for a profit, you owe 30% tax, the flat rate applied to all crypto gains in India since April 2022, with no deductions for losses. No matter how much you lost on other trades, you can’t offset it. Even if you swapped Ethereum for Solana, that’s a taxable event. And if you got free tokens from an airdrop — like the Midnight (NIGHT) drop or HUSL NFT campaign — the moment you receive them, they’re valued in rupees and added to your income. That’s why posts about airdrops on this site always mention tax implications — because getting free crypto doesn’t mean you get to keep it all.
Then there’s the TDS (Tax Deducted at Source), a 1% deduction applied to every crypto transaction over ₹50,000 (or ₹10,000 in a single day) in India, regardless of profit or loss. Exchanges like MEXC, Bybit, or Gate.io automatically withhold this when you sell or transfer. You can’t avoid it. You can only claim it back when you file your return — if you keep proper records. Most people don’t. They think if they didn’t withdraw to a bank, they’re safe. That’s wrong. The government tracks wallet addresses. They cross-check exchange data. And if you earned crypto through mining, staking, or DeFi rewards — like from Lido or Aave — that’s also income, taxed at your slab rate.
What about holding crypto long-term? Doesn’t that help? Not in India. Unlike the U.S. or Europe, there’s no capital gains exemption after one year. No matter how long you hold, 30% is 30%. And if you gift crypto to a friend or family member? That’s also taxable — to the giver, not the receiver. The rules are brutal, but they’re clear. You can’t ignore them. The penalty for non-compliance? Fines, interest, and even prosecution under the Income Tax Act.
You’ll find posts here about fake airdrops, dead exchanges, and meme coins with no value — but every single one ties back to this reality: if you’re involved in crypto in India, you’re also involved in tax. Whether you’re tracking the Glacier Drop, checking if Serum Swap still works, or wondering if Noodle coin is a scam, you’re still holding something the government wants a cut of. This collection doesn’t just explain what’s happening in crypto — it shows you how to survive it legally, without getting blindsided by a notice from the tax department.
India's no loss offset rule for crypto means traders pay 30% tax on every gain, even if they lost money elsewhere. No deductions, no carry-forwards, no relief. Here's how it's reshaping trading behavior and hurting small investors.
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