India Crypto Tax

When dealing with India crypto tax, the set of rules that dictate how cryptocurrency transactions are taxed under Indian law. Also known as crypto tax India, it affects anyone who buys, sells, or trades digital assets. Additionally, capital gains tax, tax on profit from selling assets and Goods and Services Tax (GST), indirect tax applied to certain crypto services are key components. Proper tax filing, the process of submitting returns to the Income Tax Department ensures compliance and avoids penalties.

Key aspects you need to know

First, the Income Tax Act treats crypto as a capital asset, so profits from selling coins fall under short‑term or long‑term capital gains depending on the holding period. Short‑term gains (held less than 36 months) are taxed at your regular income slab, while long‑term gains attract a flat 20% rate with indexation benefits. Second, the GST regime applies to services like crypto exchanges and wallet providers, meaning they must charge 18% GST on transaction fees. Third, every crypto trader must file an income‑tax return (ITR‑2 or ITR‑3) and disclose crypto income in Schedule CG. Failure to report can trigger a 200% penalty under Section 271C of the Act.

Beyond rates, the practical side matters. You’ll need to maintain detailed transaction logs – date, token, amount in INR, counterparties, and the purpose of each trade. Many Indian exchanges now offer downloadable CSV statements that simplify record‑keeping. When calculating gains, use the FIFO (first‑in‑first‑out) method unless you have a reliable accounting software that supports specific identification. Finally, stay aware of the upcoming changes: the Finance Ministry is reviewing a separate crypto‑specific tax slab and may introduce a “crypto‑tax” surcharge in the next budget.

India crypto tax can feel daunting, but with the right tools and a clear filing plan you can stay on the right side of the law. Below you’ll find articles that break down individual topics – from how GST impacts exchange fees to step‑by‑step guides on filing your crypto income, plus the latest updates on tax rates and compliance best practices. Dive in to get the actionable insights you need to trade confidently and keep your taxes in check.