Short-term capital gains (less than 2 years) are taxed at your marginal income slab rate, reaching up to 30% for high earners. Long-term gains (2+ years) are capped at a flat 20% rate plus 4% cess.
Capital losses on crypto cannot reduce your salary or business income in India. They offset only against other capital gains in the same year, or carry forward for up to 8 years for future use.
Missing Schedule VDA filings incur penalties of 25% to 100% of the tax shortfall. Undisclosed income above Rs. 10 lakh can trigger criminal prosecution with up to 7 years imprisonment.
CoinDCX, WazirX, and Zebpay now generate transaction reports aligned with Schedule VDA requirements, automating record-keeping but also making discrepancies harder to hide from authorities.
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