Crypto profit is taxed at a flat 30% rate on capital gains—regardless of holding period. Short-term gains (< 1 year) and long-term gains (> 1 year) are taxed identically. No indexation benefit applies. This is significantly higher than stock market taxation but applies uniformly across India.
Crypto exchanges must collect 1% Tax Deducted at Source (TDS) on all sales exceeding ₹50,000 per transaction. This applies to INR withdrawals from exchanges. Track your TDS credit—you can offset this against your final tax liability in your ITR filing.
All exchanges, wallets, and DeFi platforms now require regulatory registration via Form 167. Users should verify their exchange's registration status before trading. Unregistered platforms face ₹500,000 penalties and asset freeze orders starting September 2026.
New crypto tax brackets: ₹200/day penalty for non-filing, ₹50,000 for incorrect reporting. Deliberate under-reporting faces 200% penalties. File your crypto gains accurately in ITR Schedule 4. Exchanges are now cross-reporting to income tax authorities via automatic data upload.
August 17: CBDT comment period closes. September 1: Form 167 registration enforcement begins. October 31: ITR filing deadline for FY 2025-26. Gather exchange statements now. Use crypto tax software (ZebPay Tax, CoinDCX Tax) to auto-calculate gains. Consult a CA for complex positions.
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