WazirX, CoinDCX, ZebPay are regulated. Using Binance or Kraken creates tax and compliance risk. Registered platforms report to FIU automatically. Unregistered platforms are now flagged by banks.
Keep transaction history, cost basis, and holding periods. Tax audits will request detailed records. Exchanges provide exports—back yours up offline. Documentation reduces audit friction by 90%.
Short-term (< 12 months): Taxed as ordinary income (0-42% slab + surcharge + 4% cess = 30-47% total). Long-term (≥ 24 months): Lower rates (pending finalization). Plan accordingly.
If you haven't reported past holdings, voluntary disclosure reduces penalties significantly. Many tax advisors now offer crypto-specific services. Getting ahead of audits is cheaper than defending them.
Crypto law in India is still evolving. Expect capital gains rate clarifications and staking/DeFi yield taxation by 2027. Stay alert to RBI announcements. Compliance today = flexibility tomorrow.
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