July 31 is India's ITR deadline. If you traded crypto in FY 2025-26, you MUST declare it. 30% tax on profits. Penalty for late filing: ₹5,000. Here's exactly what to do in the next 5 days.
India crypto tax 2026: ALL profits taxed at 30% flat (no slab benefit, no exemptions). 1% TDS deducted on every sell above ₹10,000/year. Cannot use crypto losses to offset other income. Cannot offset gains from one crypto against losses from another. These rules apply to every Indian resident — no exceptions.
Every taxable event in crypto India: Selling crypto for INR. Trading one crypto for another (eg. BTC → ETH = taxable event). Using crypto to buy goods/services. Receiving crypto as payment/income. Staking/mining rewards. NOT taxable events: Buying crypto with INR. Transferring between your own wallets. Holding without selling.
1. Download complete transaction history from every exchange you used in FY 2025-26. 2. Upload to Koinly.io (supports CoinDCX, WazirX, Giottus, Binance, and most others). 3. Koinly generates your Schedule VDA summary and ITR-ready report. 4. Open ITR-2 (or ITR-3 if you have business income). 5. Fill Schedule VDA with Koinly's numbers. 6. Verify TDS credits in Form 26AS match. 7. Submit before July 31.
Good news this week: SEBI published India's first draft crypto regulatory framework. Key proposals: mandatory proof-of-reserves for exchanges, 95% cold storage requirement, 2% AUM insurance fund. If adopted in Q3 2026, Indian crypto investors get exchange-level protections similar to mutual fund regulations. This is structurally positive for Indian crypto adoption.
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