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Author: Admin | 2025-04-28
Crypto Tax India: Here's How Much You'll Pay in 2025The Income Tax Department (ITD) has not issued specific guidance on crypto tax for Indian investors. However, the Income Tax Act contains relevant provisions: Section 115BBH and Section 194S, which deal with the taxation of Virtual Digital Assets (VDAs) including cryptocurrencies, NFTs, tokens, and more. The profits from VDAs may be subject to a 30% flat tax, a 1% Tax Deducted at Source (TDS), and potentially Income Tax at your individual slab rate on non-trading income. In this fact-checked guide, we've covered everything you need to know about crypto taxes in India in 2025, including the most up-to-date guidance on Income Tax on crypto profits, 1% TDS, Schedule VDA filing in ITR & more. Not only is Koinly a free crypto tax calculator that helps you track and calculate your India crypto taxes, but we also have in-house tax experts to keep you updated on the latest regulations. Learn everything you need to know in our 2025 Ultimate India Crypto Tax Guide. Key pointsThe Finance Act 2022 was the first law to recognize Virtual Digital Assets (VDAs) in India and introduced crypto taxes.Profits from selling, swapping, or spending VDAs - including crypto - are subject to a flat 30% tax, regardless of whether you have a short or long-term gain.Losses from VDAs cannot be offset against profits or carried forward.A 1% TDS is applicable to the transfer of VDAs. Exchanges may deduct this on a user's behalf, but for P2P trades on international exchanges, investors may need to deduct and deposit the 1% TDS themselves.You may pay Income Tax at your individual slab rate for transactions like crypto mining, airdrops, or staking.Profits from crypto should be reported in the Schedule VDA in the ITR for FY 2023-2024 (AY 2024-25).Yes, cryptocurrency is subject to tax in India. In the Budget 2022, the Indian government acknowledged cryptocurrencies in India by classifying them as Virtual Digital Assets (VDAs) and introducing a taxation framework for VDAs.You’ll pay a flat 30% tax on profits from trading, selling, or spending crypto and a 1% TDS tax on the sale of crypto assets exceeding more than RS50,000 (RS10,000 in certain cases) in a single financial year. You may also pay Income Tax upon receipt at your individual slab rate if you’re seen to be earning other income in crypto, for example, through staking, airdrops, or mining. Calculate your gains and income from crypto fast with Koinly, a free crypto portfolio tracker and tax calculator. The Indian Government and Income Tax Department (ITD) have issued a lot of guidance about crypto and the potential tax implications of your investments over the past two years:2024The Income Tax Return for the
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