A 1% TDS applies to transfers once they cross ₹10,000 in a financial year, or ₹50,000 for specified persons. Indian exchanges deduct it automatically.
You can deduct only the cost of acquisition. Trading fees, gas costs and software subscriptions are not deductible against your gains.
A loss on one token cannot offset a gain on another, cannot offset other income, and cannot be carried forward. Each disposal is taxed on its own gain.
Crypto income goes in Schedule VDA of ITR-2 or ITR-3, disclosed transaction by transaction — not as a single aggregate figure — and reconciled against your AIS.
Keep a per-trade record all year, model liability trade by trade, and reconcile every TDS entry before filing. For AY 2026-27, non-audit returns are due 31 July 2027.
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