Indian Crypto Tax – What You Need to Know

When working with Indian crypto tax, the set of tax rules that apply to buying, selling, and using crypto assets in India. Also known as crypto tax India, it dictates how profits, losses, and even certain transactions are treated by the Income Tax Department. Understanding this framework is the first step to staying compliant and avoiding surprise tax bills.

The core of capital gains tax, a tax on the profit you make when you sell a crypto asset for more than you paid is simple: every gain is taxable, whether it comes from a spot trade, a swap, or a DeFi yield. Short‑term gains (assets held 36 months or less) are added to your regular income and taxed at the slab rate (5%‑30%). Long‑term gains (over 36 months) attract a flat 20% with indexation benefits. Indian crypto tax therefore encompasses capital gains tax, shaping how investors plan their trades.

Another piece of the puzzle is Goods and Services Tax (GST), the indirect tax applied to the supply of goods and services, including crypto exchanges that provide trading services. GST is levied at 18% on the service fee charged by the exchange, not on the crypto itself. This means every time you pay a trading fee, GST is baked into the cost, influencing your overall transaction expense. The interaction between GST and capital gains creates a double‑layered tax picture that many newcomers overlook.

Compliance doesn’t stop at calculating taxes. The law also demands detailed crypto reporting, the process of disclosing crypto transactions to the tax authority via Form 26AS, ITR‑2, or the new Schedule CX. You must report every purchase, sale, exchange, and even gifts that exceed INR 10,000 in a financial year. The reporting requirement includes transaction dates, quantities, fair market values in INR, and the nature of the transaction (buy, sell, swap). Failure to disclose can trigger penalties and even prosecution under the Black Money (Undisclosed Foreign Income and Assets) Act.

Crypto exchanges play a crucial role in this ecosystem. Whether you use domestic platforms like WazirX or international ones that serve Indian users, each exchange is expected to share user data with the tax department under the Aadhaar‑linked KYC regime. This data flow makes it easier for the authorities to cross‑verify the numbers you report. Choosing an exchange with transparent reporting tools can save you hours of manual data aggregation.

Putting these pieces together, a practical compliance strategy looks like this: (1) keep a spreadsheet or use a tax‑tracking app to log every trade; (2) calculate short‑term vs long‑term gains at each sale; (3) add GST on fee receipts to your expense sheet; (4) consolidate all data before filing your Income Tax Return; and (5) double‑check the figures against the transaction statements provided by your exchange. By treating each component—capital gains, GST, and reporting—as a linked step, you turn a complex tax maze into a repeatable routine.

What You’ll Find Below

The articles that follow break down each of these topics in depth. You’ll see real‑world examples of crypto capital gains calculations, step‑by‑step guides for filing GST‑inclusive fee reports, and checklists for accurate crypto reporting. Whether you’re a casual trader, a DeFi enthusiast, or a full‑time crypto professional, the collection gives you actionable insights to stay on the right side of Indian crypto tax law.