When you trade crypto in India, the government doesn’t just watch—it crypto TDS India, a 1% tax deducted at source on crypto trades, enforced by exchanges since July 2022 takes 1% right out of your transaction. It’s not a tax you pay later—it’s money pulled before you even see your profit. And if you think it only applies to big traders, think again. Even buying $100 worth of Bitcoin triggers it. This isn’t optional. Exchanges like WazirX, CoinDCX, and ZebPay are legally required to withhold it. You don’t get a choice. You don’t get a notice. It just happens.
The crypto tax India, a 30% flat tax on crypto gains, with no deductions for losses is even harsher. Lose $5,000 on one coin? You can’t offset it against a $10,000 gain on another. You pay tax on the win, lose the loss. And if you’re sending crypto to a friend? That’s a taxable event too. The crypto legal status India, a gray zone where trading is allowed but payments and banking are restricted means you can’t use crypto to buy coffee, but you can still get audited for how you traded it. The Income Tax Department uses exchange data, wallet analytics, and even bank statements to track you. In 2024, over 12,000 crypto traders received notices for underreported income. Many didn’t even know they owed anything.
And then there’s the crypto trading India, a market driven by speculation, not regulation, with millions using P2P platforms to bypass banking limits. Most traders use UPI, Paytm, or PhonePe to buy crypto—methods that leave a digital trail. The government knows who you are, how much you bought, and when you sold. If you’re using a foreign exchange like Bybit or Binance and not reporting those trades, you’re risking penalties, fines, or worse. There’s no amnesty. No grace period. Just a 1% TDS deduction that’s already been taken—and a 30% tax bill waiting if you don’t file.
What you’ll find below are real breakdowns of how crypto TDS works in practice—what exchanges deduct, who gets audited, how to claim refunds, and which projects got flagged for tax evasion. You’ll see how traders in Mumbai, Delhi, and Bangalore are navigating the rules—or getting caught. No theory. No fluff. Just what’s happening right now, in India, with real money on the line.
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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