Definition
30% Crypto Tax (India)
India taxes income from transferring virtual digital assets at a flat 30% rate, with no deductions other than cost of acquisition and no set-off of losses. This is informational, not advice.
Under the VDA tax regime, profits from selling or transferring cryptocurrencies and other VDAs are taxed at a flat 30% (plus surcharge and cess), regardless of your income slab or how long you held the asset. There is no concept of long-term versus short-term concession here.
Crucially, no expenses or deductions are allowed against this income except the cost of acquiring the asset — not trading fees, internet costs or interest. And losses from VDAs cannot be set off against any other income (including other crypto gains) or carried forward to future years.
This is one of the strictest tax treatments in Indian law. The note is informational only and not investment advice; crypto is high-risk, and anyone transacting should account for this tax and the separate 1% TDS.
Related terms
- Virtual Digital Asset (VDA)Virtual Digital Asset is the term Indian tax law uses for cryptocurrencies, NFTs and similar tokens, bringing them under a specific, stringent tax regime. This is informational, not investment advice.
- 1% TDS on CryptoIndia levies a 1% tax deducted at source on the transfer of virtual digital assets above specified thresholds, creating an audit trail of crypto transactions. This is informational, not advice.
- No Set-Off Rule (Crypto)Under India's VDA tax rules, a loss from one crypto asset cannot be offset against gains from another or against any other income, nor carried forward. This is informational, not advice.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.