Understanding the 30% Crypto Tax in India

When dealing with 30% crypto tax India, the tax rate that India imposes on cryptocurrency gains as outlined in the Finance Act and subsequent CBDT notifications. Also known as India's crypto tax regime, it covers both retail investors and professional traders by treating crypto profits as either capital gains or business income. This regime affects anyone who buys, sells, or swaps digital assets and triggers a taxable event. Crypto tax, the broader concept of taxing digital currency transactions worldwide in India dovetails with the country's Capital gains tax, a tax on profit from the sale of assets such as stocks, real estate, or crypto. The law states that gains realized from crypto are taxed at a flat 30% rate, regardless of holding period, and no deduction for cost of acquisition is allowed. To stay compliant, taxpayers must maintain detailed transaction logs—a requirement that Tax filing, the annual process of reporting income and paying owed taxes to the Indian Revenue Service fulfills. In short, 30% crypto tax India encompasses capital gains tax, and accurate reporting requires proper record‑keeping, which directly influences tax filing obligations.

Key Compliance Steps

First, identify every crypto event—buy, sell, swap, airdrop, staking reward, or crypto‑related income. Each event creates a taxable incident that must be captured in a spreadsheet or specialized software. Second, calculate the gross proceeds for each sale in Indian rupees, using the spot price on the transaction day; the difference between proceeds and the fair market value at acquisition becomes the taxable gain. Third, remember that the 30% flat rate applies whether the activity is classified as capital gains or business income, but the classification influences other filing requirements such as the need for a presumptive tax audit under Indian tax law, the set of statutes, rules, and circulars governing taxation in India. Fourth, report the total taxable crypto income in Schedule CG of I‑TR and pay advance tax if your liability exceeds INR 10,000 during the year. Finally, retain all trade confirmations, wallet addresses, and exchange statements for at least six years, as the Income Tax Department can request them during a scrutiny. These steps turn a confusing tax landscape into a manageable checklist and ensure you don't face penalties or interest.

Now that you have a solid grasp of how the 30% crypto tax works, who it hits, and the practical steps to stay on the right side of the law, you’re ready to dive into the detailed guides below. Below you’ll find articles that break down specific scenarios—like staking rewards, DeFi yields, and cross‑border airdrops—so you can apply the rules to your own portfolio with confidence.