What is the tax rate on crypto in India?

In India, income from the transfer of any Virtual Digital Asset (VDA), including cryptocurrencies, is taxed at a flat rate of 30%, plus applicable cess and surcharges. No deductions are allowed, except for the cost of acquisition.

Can I offset crypto losses against other income?

No. Under current Indian tax law, losses from cryptocurrency transactions cannot be offset against any other income (like salary, stocks, or property). Furthermore, losses from one crypto asset cannot be offset against gains from another.

What about the 1% TDS on crypto transactions?

A 1% Tax Deducted at Source (TDS) is applicable on crypto transactions above certain thresholds. This TDS can be claimed as a credit against your final tax liability when you file your income tax return. It is not your final tax.

Cryptocurrency Tax Calculator (India)

Transaction Details

Total Buy Price (Cost of Acquisition) (₹)

Total Sell Price (Consideration) (₹)

Transaction Fees (Brokerage, etc.) (₹)

Tax Rate

Applicable Tax Rate

Your Tax Calculation

Net Capital Gain

₹0

Taxable Amount

₹0

Estimated Tax Payable

₹0

How Does This Calculator Work?

This calculator simplifies crypto tax calculation based on India's regulations for Virtual Digital Assets (VDA):

Calculate Net Gain/Loss: It first determines your net profit or loss from the transaction using the formula:
Net Gain/Loss = Sell Price - (Buy Price + Transaction Fees)
Determine Taxable Amount: If the result is a gain, that amount is your taxable income. Under Indian law, if it's a loss, the taxable amount is zero, and the loss cannot be used to offset other gains.
Calculate Final Tax: The taxable amount is then multiplied by the selected tax rate (defaulted to 30%) to find your total tax liability for that transaction.

The Cautionary Tale of the 10,000 Bitcoin Pizza

On May 22, 2010, history was made. A programmer named Laszlo Hanyecz made the first-ever documented real-world purchase using Bitcoin. He paid 10,000 BTC for two large pizzas. At the time, this was a breakthrough, proving cryptocurrency could function as a medium of exchange. The value of those Bitcoins was roughly $41.

Let's fast-forward to today. At its peak, that 10,000 BTC was worth over $600 million. Imagine the tax implications! If Laszlo were an Indian taxpayer who sold that Bitcoin today for, say, ₹5,000 crores, his "cost of acquisition" would be a mere ₹3,000. His taxable gain would be astronomical. The 30% tax bill alone would be around ₹1,500 crores!

This surprising story isn't just a fun fact; it's a crucial lesson for every crypto investor. Every transaction, no matter how small, has a cost basis. Tracking your buy price and fees from day one is absolutely essential. The "small" transaction you make today could have massive tax consequences years down the line. This calculator helps you stay on top of those consequences, one transaction at a time.

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Frequently Asked Questions (FAQ)

What is considered 'Cost of Acquisition' for crypto?

It is the total amount you paid to acquire the cryptocurrency. This includes the purchase price plus any transaction fees, brokerage, or gas fees you paid during the buying process. Keeping a record of these fees is important as they can reduce your taxable gain.

Do I need to pay tax if I trade one crypto for another (e.g., BTC for ETH)?

Yes. In India, trading one crypto for another is considered a "transfer" and is a taxable event. The fair market value of the crypto you received at the time of the trade is treated as the "sell price" of the crypto you gave away.

What about income from crypto mining or airdrops?

Income from mining is generally treated as regular income and taxed at your slab rate. For airdrops or gifted crypto, the "cost of acquisition" is considered to be zero. When you sell them, the entire sale amount becomes a taxable capital gain.