India Cryptocurrency Tax

When dealing with India cryptocurrency tax, the set of rules that dictate how digital‑asset transactions are taxed under Indian law. Also known as crypto tax in India, it affects anyone who buys, sells, or holds crypto on Indian soil. The tax framework blends income‑tax concepts with capital‑gains calculations, meaning you must track each trade, the holding period, and the fair‑market value at the time of disposal. In short, India cryptocurrency tax is not a single rate but a collection of provisions that together decide what you owe.

Key components that shape the tax landscape

One of the most frequently questioned pieces is Capital Gains Tax, the levy on profit earned from the sale of assets held for a period of time. Short‑term gains (assets held less than 36 months) are added to your regular income and taxed at your slab rate, while long‑term gains benefit from a flat 20% rate with indexation. Another cornerstone is Goods and Services Tax (GST), a consumption‑based tax that applies to the provision of services, including crypto‑related services. When you exchange crypto for another crypto on a domestic platform, GST may be triggered on the service fee, not the trade itself. Both capital‑gains and GST calculations require accurate record‑keeping, and the tax authority increasingly expects detailed statements from exchanges.

The broader legal framework rests on the Income Tax Act, India's primary legislation governing taxation of individuals and businesses. Sections 45(2) and 115BAC are often cited when classifying crypto profits as either business income or capital gains. Meanwhile, crypto exchange reporting, the mandatory submission of user transaction data to tax authorities by regulated platforms has become a compliance checkpoint. Exchanges must furnish Form 26AS‑compatible reports, and users are expected to reconcile these with their own filings. Together, these entities form a web where the tax outcome depends on holding periods, transaction types, and whether the activity is deemed a hobby or a business. Understanding each link helps you avoid surprises at year‑end and lets you plan tax‑efficient strategies. Below you’ll find a curated set of articles that break down these rules, offer step‑by‑step filing guides, and highlight recent updates that could affect your crypto portfolio.