Crypto Tax Calculator India (2026)

Calculate exact 30% flat tax, 4% cess, and 1% TDS on your Virtual Digital Asset (VDA) trades. Ensure compliance with Section 115BBH.

Rules | Formula | FAQs

Trade Details

Value at which you sold the crypto.

Purchase price. (No exchange fees allowed).

Tax Output

Net Tax Payable (to Govt)

₹0
Sale Value ₹0
Less: Cost of Acquisition - ₹0
Net Profit ₹0
Tax on Profit (30%) ₹0
Add: Health & Edu Cess (4% of Tax) + ₹0
Total Tax Liability (31.2%) ₹0
Less: TDS Deducted (1% of Sale) - ₹0

Tax Insights

  • 🚫 Gas fees, exchange commission, or mining costs CANNOT be deducted.
  • ✅ TDS can be claimed as a refund if your overall total tax liability for the year is lower.

Calculation Logic

Total Tax = (Profit × 30%) + (Tax × 4%)
TDS = Sale Value × 1%

Step-by-Step Example

If you sell Bitcoin for ₹5,00,000, purchased for ₹2,00,000:
  • Profit = ₹3,00,000
  • 30% Tax on Profit = ₹90,000
  • 4% Cess on ₹90,000 = ₹3,600
  • Total Tax = ₹93,600
  • Exchange deducts 1% TDS on ₹5,00,000 = ₹5,000
  • Net Payable to Govt = 93,600 - 5,000 = ₹88,600

How is Crypto Taxed in India?

Under the Income Tax Act, cryptocurrencies, NFTs, and other tokens are classified as "Virtual Digital Assets" (VDAs) under Section 115BBH. The government introduced a draconian tax regime for VDAs starting April 1, 2022, aimed at heavily discouraging crypto trading while tracking transactions via TDS.

The 4 Pillars of Crypto Tax

Rule Description
Flat 30% Tax All profits are taxed at 30% irrespective of your income tax slab. Even if your total income is below the basic exemption limit (₹3 Lakhs), you must pay 30% on crypto profits.
No Deductions Allowed Unlike stocks or business income, you cannot deduct exchange fees, internet bills, or mining infrastructure costs. ONLY the acquisition cost of the crypto can be deducted.
No Set-Off of Losses If you make a ₹1 Lakh profit in Bitcoin and a ₹80,000 loss in Ethereum, you CANNOT set off the loss. You must pay 30% tax on the full ₹1 Lakh profit. The loss is dead.
No Carry Forward Losses cannot be carried forward to subsequent years. They lapse in the same financial year.

Section 194S: 1% TDS on Crypto

To track the movement of crypto, the government mandates a 1% TDS (Tax Deducted at Source) under Section 194S on the TOTAL SALE CONSIDERATION. This means if you sell crypto worth ₹100, the exchange will deduct ₹1 and give you ₹99. This ₹1 TDS sits in your Form 26AS. You can adjust this TDS against your final 30% tax liability when filing your return, or claim it as a refund if you had no profits.

Is Crypto-to-Crypto exchange taxable?

Yes. Swapping USDT for Ethereum is considered a 'transfer' of USDT. You must calculate the INR value of the USDT at the time of the swap, find the profit, and pay 30% tax on it. Furthermore, 1% TDS applies to both sides of the crypto-to-crypto transaction.

Airdrops & Crypto Gifts

How are free tokens taxed? The government has closed all loopholes regarding free money.

Airdrops (Taxed at Receipt)

When you receive an airdrop, its market value is taxed as "Income from Other Sources" at your slab rate. When you later sell it, the profit is taxed at 30%.

Crypto Gifts

Gifts of crypto exceeding ₹50,000 from non-relatives are fully taxable in the hands of the receiver at their slab rate.

Frequently Asked Questions

1. What is the tax rate on Cryptocurrency in India?
Under Section 115BBH, any income from the transfer of Virtual Digital Assets (VDAs) or crypto is taxed at a flat rate of 30%, plus a 4% health and education cess. The effective rate is 31.2%.
2. Can I set off my crypto losses against crypto profits?
No. The Income Tax Act clearly states that loss from the transfer of ONE virtual digital asset cannot be set off against income from ANOTHER virtual digital asset. Each coin's profit is taxed individually.
3. Can I carry forward my crypto losses to next year?
No. Losses from cryptocurrency cannot be carried forward to subsequent assessment years.
4. What deductions are allowed while calculating crypto tax?
No deductions are allowed for any expenditure (like exchange fees, gas fees, internet costs, mining costs) EXCEPT the direct Cost of Acquisition.
5. What is the 1% TDS rule on Crypto?
Under Section 194S, a 1% TDS is deducted on the Total Sale Consideration (not just the profit) when you sell a crypto asset. This TDS is usually deducted automatically by Indian exchanges.
6. Can I claim the 1% TDS back as a refund?
Yes, if your overall tax liability for the year (including all income sources) is less than the TDS deducted, you can claim the excess TDS as a refund while filing your Income Tax Return (ITR).
7. Do I have to pay tax if I just hold crypto and don't sell?
No, you only pay tax upon the 'transfer' (sale or exchange) of the crypto. Merely holding it in your wallet does not trigger a tax event.
8. Is exchanging one crypto for another taxable?
Yes. Exchanging Bitcoin for Ethereum is considered a 'transfer' of Bitcoin. You must calculate the profit on the Bitcoin sale in INR and pay the 30% tax.

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