Definition
Crypto Cost Basis (India)
Cost basis for crypto in India is the cost of acquisition, the only deduction allowed against VDA gains taxed at 30%; computing it correctly is key for tax filing. This is informational.
Under India's VDA tax rules, the only deduction permitted against the flat 30% tax on crypto gains is the cost of acquisition of the asset transferred. Trading fees, interest, infrastructure and other expenses cannot be claimed.
Accurately tracking what you paid for each unit — across multiple buys, transfers and exchanges — is therefore essential to compute taxable gains, especially given the no set-off rule that bars netting losses.
Maintaining clear records of acquisition cost and dates helps with compliance and the 1% TDS reconciliation. This entry is informational only, not investment advice; crypto is high-risk and the tax treatment is stringent.
Related terms
- 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.
- 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.