India introduced a clear crypto tax framework in 2022, and since then, all Virtual Digital Asset (VDA) transactions must be reported in your Income Tax Return (ITR). This guide explains everything you need to know about filing crypto taxes in India in 2026.
India’s Crypto Tax Framework: The Basics
The Finance Act 2022 introduced the following rules for Virtual Digital Assets (VDAs), which includes all cryptocurrencies:
30% Tax on Gains
Any profit from selling, exchanging, or transferring crypto is taxed at a flat 30%. This applies regardless of:
- How long you held the asset
- Your income slab
- Whether you bought it as an investment or for trading
No deductions are allowed except the cost of acquisition (the price you paid to buy the crypto).
1% TDS
A 1% Tax Deducted at Source (TDS) applies on crypto transactions above certain thresholds. The exchange deducts this automatically. It is an advance tax payment credited against your final liability.
No Loss Set-Off
Losses from crypto cannot be offset against:
- Gains from other crypto assets
- Income from stocks, mutual funds, or other sources
- Any other income
Each crypto asset is treated separately for gains calculation.
What Counts as a Taxable Event?
You owe tax on gains from:
- Selling crypto for INR
- Exchanging one crypto for another (crypto-to-crypto swap)
- Using crypto to pay for goods or services
- Receiving crypto as payment or income (business transactions)
- Staking or mining rewards received (taxed at market value at time of receipt)
- Gifts of crypto above the ₹50,000 threshold
What is Schedule VDA?
In your ITR form, there is a section called Schedule VDA (Virtual Digital Assets) where you report all crypto transactions. You must enter:
- Acquisition date and cost
- Sale/transfer date and value
- Gain or loss for each transaction
All cryptocurrencies, NFTs, and other VDAs go under this schedule.
Step-by-Step: How to File Crypto Taxes in India
Step 1: Gather Your Transaction History
Download your transaction history from ZebPay. It includes all buys, sells, SIP purchases, and withdrawals with:
- Dates and times
- INR values at the time of each transaction
- TDS deducted
If you hold crypto on other platforms, download transaction history from each.
Step 2: Calculate Your Gains
For each sell or exchange transaction:
- Gain = Sale Price – Cost of Acquisition
- Use FIFO (First In, First Out) for multiple buy lots of the same asset
If you have many transactions, consider using a crypto tax tool like Koinly or ClearTax Crypto that supports Indian tax rules.
Step 3: Calculate Total TDS Deducted
Sum all TDS deducted across all qualifying transactions during the year. This is your advance tax credit.
Step 4: Choose the Right ITR Form
- ITR-2: For individuals with capital gains from crypto (most common for crypto investors)
- ITR-3: If crypto trading constitutes business income
Consult a CA if you are unsure which form applies to you.
Step 5: Fill Schedule VDA
In your ITR form, navigate to Schedule VDA and enter each transaction. The form computes your total gain automatically.
Step 6: Calculate Your Final Tax
Your total crypto gain × 30% = Gross tax liability
Subtract TDS already deducted. If TDS > tax liability, you are eligible for a refund. If tax > TDS, you must pay the balance.
Step 7: File Before the Deadline
The standard ITR deadline for most individuals is July 31. Check for any extensions notified by the Income Tax Department.
Does ZebPay Help with Tax Compliance?
Yes. ZebPay is FIU-IND registered and provides:
- Downloadable transaction history with INR values and TDS records
- Automatic 1% TDS deduction on qualifying transactions
- Compliant trading records for audit purposes
This makes tax filing more straightforward than exchanges that do not provide proper records.
Common Crypto Tax Filing Mistakes in India
Not reporting small gains: Every crypto gain, no matter how small, must be reported.
Assuming long-term gains are taxed at a lower rate: They are not. All crypto gains in India are taxed at 30%.
Forgetting crypto-to-crypto swaps: Every time you swap BTC for ETH (or any other coin), it is a taxable event.
Not accounting for SIP purchases: Each SIP instalment is a separate acquisition with its own cost basis.
Missing staking rewards: Staking rewards or Earn yields received may be taxable at their market value when received. Consult a qualified tax professional.
Consult a qualified tax professional for advice specific to your situation. Tax rules are subject to change.
Frequently Asked Questions About Crypto Taxes in India
Is crypto taxed in India?
Yes. All VDA gains are taxed at 30% and 1% TDS applies on qualifying transactions.
Do I pay tax if I hold but do not sell?
No. Unrealised gains (holding crypto without selling) are not taxed. Tax applies only when you sell or exchange.
What if I forgot to report crypto in previous ITRs?
You can file a revised ITR within the allowed time period. For missed declarations beyond that, consult a Chartered Accountant for guidance on compliance options.
Can I claim TDS as a refund?
If your total 30% tax on gains is less than the TDS deducted, you can claim the excess TDS as a refund in your ITR.
Do I pay GST on crypto?
Crypto trading is subject to 18% GST on exchange fees. This is typically built into the fees charged by registered exchanges. You do not separately remit GST.
Is Bitcoin treated differently from altcoins for tax purposes?
No. All cryptocurrencies are VDAs and subject to the same tax rules: 30% on gains and 1% TDS.
Can I deduct wallet transfer fees?
Transfer fees to move crypto between wallets are generally not deductible as they are not the cost of acquisition. Consult a tax professional.
Final Thoughts
Filing crypto taxes in India is mandatory and straightforward once you have proper records. ZebPay provides the transaction history you need to calculate your gains and fill Schedule VDA in your ITR.
The key steps are: download your transaction history, calculate gains using the 30% rule, account for TDS already deducted, and file by the deadline.
Get started today and join 6 million+ registered users exploring crypto investing on ZebPay!
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The information in this article is for educational purposes only and does not constitute financial or investment advice.
