India taxes crypto gains at a fixed 30% rate with no loss offset allowed. This applies to all virtual digital assets (VDAs). Unlike stocks or bonds, you cannot deduct losses from gains in the same year.
A 1% tax-deducted-at-source applies to every VDA transfer above 10,000 rupees. Exchanges deduct and remit this automatically. The deduction reduces your gain basis when calculating final tax liability.
From April 1, 2026, crypto exchanges report all user transactions directly to tax authorities. Data sharing includes daily volumes, holding periods, and wallet addresses. Non-compliant platforms face penalties.
Form 167 filing starts in 2027. India will exchange crypto holding data with other nations automatically. If you hold coins on foreign exchanges, expect Indian tax authorities to track them.
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