TL;DR

• Crypto taxes in India are set at a flat 30% on gains and 1% TDS on the sale or transfer of crypto assets.

• You must file crypto gains under ITR-2 or ITR-3, using Schedule VDA.

• The deadline for AY 2025–26 is 31st July 2025 (unless extended).

• Tools like KoinX, Koinly, and ClearTax Crypto simplify crypto tax calculations.

• Even losses must be reported, but can’t be offset against other income.

1. Why This Guide Matters

According to a 2022 statement from the Finance Ministry, TDS (Tax Deducted at Source) collections from trading virtual digital assets totaled ₹60.46 crore.

Crypto may be decentralized, but compliance with crypto taxes in India is anything but. Since the 2022 budget classified cryptocurrencies, NFTs, and other digital assets as Virtual Digital Assets (VDAs), tax rules have tightened - and in 2025, the Income Tax Department is watching more closely than ever.

If you bought, sold, swapped, staked, gifted, or earned crypto in any way, you're expected to report it correctly while filing your Income Tax Return (ITR). The challenge? Navigating tax slabs, flat-rate crypto taxes, Schedule VDA, and ever-changing CBDT circulars.

That’s why we’ve built this no-fluff, step-by-step guide to help every kind of Indian crypto user - casual HODLers, day traders, NFT collectors, and DeFi explorers - get their crypto tax filing right in 2025.

2. Who Needs to File Crypto Taxes in India?

The short answer? Almost everyone who’s touched crypto or virtual digital assets. But your obligations vary based on your activity.

Even if you’ve made losses, you still need to report to the Income Tax Department. While losses from crypto can’t be offset or carried forward, failing to declare them in your income tax return could raise red flags.

3. India’s Crypto Tax Rules (2025 Update)

Let’s break down how the Indian government currently taxes virtual digital assets:
30% Flat Tax on Gains

Applies only when you sell a crypto asset.
No deductions allowed (not even gas fees or platform charges).
Applies regardless of holding period (short-term and long-term taxed the same).
1% TDS on Sell Transactions

Applies every time you sell crypto/virtual digital assets worth more than ₹10,000 (or ₹50,000 in some cases).
Exchanges like WazirX and CoinDCX deduct TDS automatically and deposit it to the government.
You can see TDS records in your Form 26AS on the Income Tax Portal.

Income from Crypto (Not Sales)
| Type | How it's taxed|
|----------|----------|
|Staking rewards|As income under “Other Sources” |
|Mining rewards|As business income (if mining is systemic)|
|Aidrops/referral bonuses|“Other income”|
|“Other income”|Taxed as salary income|

Gifting Crypto

Gifts above ₹50,000 in crypto/virtual digital assets are taxable in the hands of the receiver (unless exempt, e.g., gifted by close relatives or on marriage).
Must be reported to the Income Tax Department even if no money was exchanged.

4. Documents You’ll Need

Before you start calculating and filing, prepare the following:

• Transaction history from all exchanges (INR and international)

• Wallet addresses and self-custody transfers

• Buy/sell prices and INR conversion rates

• TDS certificates from exchanges (if applicable)

• Profit/loss summary (use KoinX/Koinly to export)

• Any CA-generated reports or audit documents

Pro Tip: Use our Crypto Tax Filing Checklist (PDF) to make sure you don’t miss a step.

5. Step-by-Step: How to File Crypto Taxes in India

[Important - First, register yourself on the GOI's Income Tax Portal with PAN/Aadhaar details.]

Here’s how to go from chaos to compliance in 6 steps when filing crypto taxes in India:
Step 1: Reconcile Your Transactions
Download your full trade and wallet history from every platform you’ve used. Use tools like KoinX or Koinly to auto-tag them and convert to INR.
Step 2: Categorize Your Activity
Classify trades as capital gains or income:

Selling crypto/NFT = Capital Gains
Staking/mining/airdrops = Other Income

Step 3: Check TDS Already Paid
Exchanges typically deduct this, but you should:

• Cross-check via Form 26AS on the Income Tax Portal

• Claim TDS credit during filing

How to access Form 26AS:

• Log in to the Income Tax Portal

• Proceed to e-File > Income Tax Returns > View Form 26AS

Step 4: Use ITR-2 or ITR-3
Choose the correct ITR form:

Use ITR-2 if:

• You’re a salaried individual with capital gains from crypto trading/investing.

• You do not have income from a business or profession.

Use ITR-3 if:

• You have a business income related to virtual digital assets - e.g., mining, full-time trading, NFT minting, or crypto freelancing.

How to select ITR-2 or ITR-3:

• Log in to the Income Tax Portal

• Go to e-File > Income Tax Return

• Select Assessment Year

• Select Online mode (unless uploading JSON)

• Pick ITR-2 or ITR-3

Step 5: Fill Schedule VDA
Schedule VDA is the dedicated section for crypto tax disclosure introduced in AY 2023–24. When filing crypto taxes in India, you will have to use this section to report the following:

Sale date, purchase date
Cost of acquisition
Sale price
TDS deducted
Net gains
Nature of virtual digital assets - e.g., Bitcoin, Ethereum, NFTs, etc.

You can fill this manually or upload a prefilled report via tax software.

Here’s how to manually fill Schedule - VDA:
You’ll see the Schedule - VDA option only after choosing ITR-2 or ITR-3
In the form menu (left sidebar), scroll to Schedule - VDA
Click Add Details for each crypto transaction
Add multiple entries if you had many trades
Save each entry before moving on to the next
Confirm summary at the end of the section
Step 6: Submit and Verify
This is the final step in filing your crypto taxes in India.

Remember, once you e-verify, your return is officially filed and processed by the Income Tax Department, making you liable for any tax, penalties, or consequences based on the information submitted.

Here’s how to e-Verify:

• File a return on the Income Tax Portal
• Go to e-File > Income Tax Returns > e-Verify Return
• E-verify using Aadhaar OTP or net banking
• Save your acknowledgment (ITR-V)

Tools to Calculate Crypto Taxes in India (KoinX, Koinly & Others)
Let’s face it: manually calculating your crypto taxes in India is a nightmare - especially when you’ve traded virtual digital assets across multiple exchanges, wallets, and blockchains. That’s where crypto tax software comes in.

These tools automate the calculation, generate reports for Schedule VDA, and even integrate with Indian exchanges. Below are some of the most trusted platforms available for Indian investors:

KoinX (India-Focused)

• USP: Built for crypto taxes in India

• Exchange support: WazirX, CoinDCX, Binance, and more

• Features: Auto-import trades, real-time gain/loss calculations, Schedule VDA-ready reports, and 194S TDS tracking

• Pricing: Free basic plan, paid tiers start at ₹115/year

• Integrations: Direct import into Income Tax utility or via CSV

Best for Indian retail investors who want localized tax computation and direct e-filing support.

KoinX’s official website.

Koinly

• USP: Global tax support

• Exchange support: 400+ exchanges including international platforms like Coinbase, Kraken, and Bitfinex

• Features: FIFO/LIFO accounting, multi-wallet support, tax-loss harvesting reports

• Pricing: Free tier for viewing, paid plans start at ~₹490/year

While not India-specific, Koinly allows you to manually adjust the tax logic to suit crypto taxes in India and its 30% regime.

Koinly’s official website.

CoinTracker

**

• Backed by Coinbase**, this platform shines with portfolio tracking + tax reporting
  .

• Exchange support: 500+ integrations including Metamask, Binance, and OpenSea

• USP: Real-time portfolio management with tax estimates

• Pricing: Starts at $59/year for tax reports

CoinTracker's official website.

ClearTax Crypto

• A specific tool for crypto taxes in India under the trusted ClearTax brand

• Generates Schedule VDA + ITR-compatible summaries

• Syncs with Indian and global exchanges

• Free + Paid tiers starting at ₹849 available

Cleartax Crypto’s official website.

Note: Always check if the tool supports NFTs and non-custodial wallets (like Metamask) if you use those heavily.

Common Filing Mistakes to Avoid

Crypto taxes in India are new territory for many. Unfortunately, that means mistakes are common - and can lead to penalties or scrutiny from the Income Tax Department. Here's what to watch out for:

Not Reporting Every Transaction
Trades in virtual digital assets must be reported individually in Schedule VDA. Do not club trades or report only a net summary. The form expects:

• Sell date

• Buy date

• Sell price

• Cost

• TDS

• Gains

Using the Wrong ITR
When filing crypto taxes in India, using ITR-1 when you have crypto gains is invalid. Stick to:

• ITR-2 if you’re investing in crypto

• ITR-3 if you’re trading or mining crypto as a business
  Using the wrong form can result in return rejection or tax notices.

Ignoring TDS Compliance
Crypto platforms deduct 1% TDS under Section 194S regarding crypto taxes in India. But if you trade on international exchanges or peer-to-peer, you may be liable to deduct and deposit TDS yourself to the Income Tax Department.

Not doing this? You could face:

• 100% penalty

• Interest on unpaid TDS

• Disallowance of expense

Pro Tip: Check Form 26AS and AIS (Annual Information Statement) for all reported TDS against your PAN.

Claiming Ineligible Deductions
Under Section 115BBH:

You cannot claim deductions for expenses, brokerage, or internet bills when filing crypto taxes in India
You also cannot offset losses from one VDA against gains from other virtual digital assets (e.g., BTC loss ≠ ETH gain).
Carry forward of losses is not allowed.

Ignoring Airdrops, Forks, and Mining Rewards
These are taxed by the Income Tax Department at fair market value on receipt, not just when sold. Make sure they’re:

Reported under "Income from Other Sources"
Or included in business income (if using ITR-3)

Deadlines & Penalties (AY 2025–26)

Missing the deadline for filing crypto taxes in India? That’s not a good idea. Here are the important dates and the costs of non-compliance.

Key Deadlines (AY 2025–26)

Penalties for Non-Compliance

Warning: The Income Tax Department is actively monitoring crypto wallets, exchanges, and foreign transactions. Don’t risk penalties by underreporting or avoiding tax when filing crypto taxes in India.

Final Thoughts & Crypto Tax Checklist
Filing crypto taxes in India might seem intimidating, but with the right tools, awareness, and documentation, it's entirely manageable. And remember - crypto/virtual digital assets might be decentralized, but tax laws are not.

As the Indian tax system evolves, the Income Tax Department is getting smarter with AI-powered red flags, tighter enforcement, and data sharing between exchanges and regulators. If you're serious about crypto in 2025, clean records and accurate filings are your best defense.

Your Checklist for filing crypto taxes in India for AY 2025–26

• Consolidate all your crypto trades (INR and non-INR pairs)

• Classify whether you’re an investor or trader

• Choose correct ITR (2 or 3)

• Fill Schedule VDA with transaction-wise data

• Download and verify Form 26AS and AIS

• Declare airdrops, mining income, and forks (if any)

• Check for missing TDS, pay if applicable

• Use tax software (like KoinX or ClearTax Crypto)

• Review, file, and e-verify your ITR

• Save all records in case of audit

Want a downloadable version of this checklist? Click here for a free PDF version!

Visit Blockverse for more articles and level up your crypto game today.

Disclaimer: The information provided in this article is only for educational purposes and it does not constitute legal, financial, or tax advice. Cryptocurrency investments and transactions are subject to risks and regulatory scrutiny in India. Please consult a qualified tax advisor or legal professional before filing your returns or making financial decisions related to virtual digital assets (VDAs). Blockverse is not liable for any outcomes based on the information presented here.

FAQs

Is 1% TDS on crypto refundable?
When 1% TDS is deducted on your crypto transactions under Section 194S, that amount is deposited with the Income Tax Department and appears in your form 26AS as tax already paid on your behalf.

At the end of the financial year, when filing your income tax return, you calculate your total tax liability - including all your income, not just crypto. If the total TDS deducted (including the 1% on crypto) is more than your final tax liability, the excess amount can be claimed in the form of a refund.

Is Binance taxable in India?
Any profits you make from trading, selling, or spending crypto on Binance are subject to a 30% tax, and you are also required to deduct and deposit 1% TDS under Section 194S if trading on an international exchange like Binance.

Because Binance operates as a foreign exchange and does not have to comply with Indian tax laws, Indian traders using Binance have to manually deduct and file TDS themselves.

Can I gift crypto to my wife?
Yes, you can gift crypto to your wife. If both of you are resident Indians, the gift is fully tax-exempt for her - there is no tax on gifts received from a spouse, regardless of the amount.

Which country has no crypto tax?
Several countries have no tax on crypto gains. Some of the most notable crypto tax-free countries include:

• Cayman Islands

• Bermuda

• British Virgin Islands

• El Salvador

• United Arab Emirates (UAE)

• Singapore

• Switzerland (in many cantons, for private investors)

• Portugal (long-term holdings only)

• Malta

• Hong Kong

These countries either have no capital gains tax, no personal income tax, or specific exemptions for cryptocurrency, making them attractive for crypto investors.