In India, crypto is no longer a shadow economy. It’s regulated, taxed, and monitored—and if you’re trading digital assets without calculating and reporting taxes correctly, you’re walking a legal tightrope. This guide breaks down everything you need to know about using crypto tax calculators and filing your taxes in India like a pro.
Is Crypto Taxable in India?
Yes. After the Budget 2022, cryptocurrencies, NFTs, and tokens were officially categorized as Virtual Digital Assets (VDAs) under Section 2(47A) of the Income Tax Act.
Here’s what that means for you:
- Flat 30% tax on gains (no matter short or long-term)
- 1% TDS on crypto transfers above ₹50,000 (or ₹10,000 in some cases)
- No deductions allowed (except cost of acquisition)
- No loss set-off or carry-forward
- Gifts are taxable for the recipient (with some exceptions)
How to Calculate Crypto Tax in India
You pay taxes only when you sell, trade, spend, or receive crypto (airdrop, staking, mining). Here’s the formula:
Profit = Selling Price – Cost of Acquisition
But wait, it’s not that simple if you’ve traded across platforms. That’s where crypto tax calculators come in.
Top Crypto Tax Calculators for India
Here are the best tools to automate your crypto taxes and stay ITD-compliant:
| Platform | Key Features | Link |
|---|---|---|
| Koinly | Supports 800+ exchanges, tracks trades, generates ITR-ready reports | koinly.io/in |
| KoinX | India-specific rules, auto sync with WazirX/CoinDCX, GST/TDS tools | koinx.com |
| ClearTax | Integrated with Indian exchanges, easy ITR-2/3 filing | cleartax.in |
| Binocs | AI-powered tax summary and audit reports | binocs.co |
These platforms auto-import trades, assign correct cost basis (FIFO/Average), and split gains/losses between capital gains and other income like mining or staking.
Where to Report Crypto on Your ITR?
For FY 2023-24 (AY 2024-25), crypto income must be reported in the ITR-2 or ITR-3 under Schedule VDA.
Which form to use?
| Scenario | ITR Form |
|---|---|
| Trading/ investing as an individual | ITR-2 |
| Earning via business activity (e.g., mining) | ITR-3 |
Reporting Steps (Koinly Workflow):
- Log in to the Income Tax e-Filing Portal
- Choose ITR-2/3, select Schedule VDA
- Enter:
- Date Acquired
- Date Sold
- Cost of Acquisition
- Consideration Received
- Head of Income (Capital Gain or Business Income)
- Add crypto-related income under “Other Sources”
What is 1% TDS and How to Pay It?
Under Section 194S, a 1% TDS applies when:
- You sell crypto worth > ₹50,000/year (₹10,000 for some cases)
- You trade crypto-to-crypto
- You buy crypto P2P or via international platforms
Who deducts the TDS?
| Platform Type | TDS Deduction |
|---|---|
| Indian Exchange | Auto-deducted |
| International Exchange / P2P | Buyer must deduct manually using Form 26QE/26Q |
Failure to deduct or pay TDS? Be ready for penalties, interest, and even jail time under Section 276B.
Key Filing Dates
Understanding the tax calendar is crucial for avoiding penalties. For Indian crypto investors, the financial year runs from April 1, 2024, to March 31, 2025. During this period, all crypto gains, staking income, or token sales must be accounted for and reported in your Income Tax Return (ITR).
The regular ITR filing deadline is July 31, 2025. If you miss this, a belated return can still be filed until December 31, 2025, though you may incur late fees. For those handling Tax Deducted at Source (TDS), returns must be filed monthly (via Form 26Q) or within 30 days (via Form 26QE for individuals in P2P trades).
| Action | Due Date |
|---|---|
| File ITR | July 31, 2025 |
| Belated Return | December 31, 2025 |
| TDS Return (Form 26Q) | 7th of the next month |
| TDS via Form 26QE | Within 30 days of deduction |
Missing these deadlines could result in interest charges, fines, or in extreme cases, legal action.
Tax Scenarios and How They’re Treated
Crypto taxation in India varies depending on the type of transaction. It’s not just about trading Bitcoin for INR — even swapping ETH for USDT or earning airdrops has tax implications. Here’s how different activities are viewed by the Income Tax Department:
| Transaction Type | Tax Rate | Additional Notes |
|---|---|---|
| Selling crypto | 30% + 4% cess | Applies only to profits made |
| Trading crypto-to-crypto | 30% | Treated the same as selling for INR |
| Spending crypto | 30% | Buying a coffee with Bitcoin? That’s taxable. |
| Holding crypto | Tax-free | Until you sell or swap, there’s no tax liability |
| Airdrop income | Slab rate | Taxed when received; again at 30% on disposal |
| Mining/Staking | Slab rate | Income at receipt, 30% again when sold |
| Receiving gifts | Slab rate | Taxable if over ₹50,000 from non-relatives |
This framework ensures all profit-generating actions are captured, while simply holding crypto or transferring between your own wallets remains tax-free.
Crypto Tax Mistakes That’ll Cost You
With India tightening its crypto compliance net, small oversights can lead to big consequences. Many new investors assume crypto is still in a legal grey area—it’s not. Here are some costly mistakes you should avoid:
- Skipping TDS: If you’re buying crypto via P2P or international exchanges, you may be liable to deduct and pay 1% TDS. Ignoring this can trigger penalties under Section 271C or even jail under 276B.
- Not Reporting Crypto-to-Crypto Trades: Swapping ETH for USDT? It’s taxable. Many users forget this isn’t a loophole—it’s explicitly taxed under Section 115BBH.
- Missing Schedule VDA: Since FY 2022–23, crypto transactions must be reported in the Schedule VDA section of ITR-2 or ITR-3. Missing it is like not reporting your income.
- Trying to Deduct Trading Fees or Losses: You cannot deduct exchange fees, infrastructure costs, or even offset one crypto loss against another gain. The only allowed deduction is the cost of acquisition (i.e., the purchase price of the token sold).
- Thinking HODLing is Taxable: Just holding onto tokens (HODLing) is not taxable. You only pay when you sell, swap, or spend them.
Avoiding these pitfalls ensures your crypto journey is legally compliant and stress-free.
Final Thoughts
Cryptocurrency tax in India is no longer in a gray zone. Whether you’re an investor or a daily trader, using a trusted crypto tax calculator and filing your ITR with accurate Schedule VDA entries is not optional—it’s essential.
With stricter TDS compliance and penalties for incorrect filings, reporting accurately isn’t just smart—it’s survival.
