Crypto Tax India: What You Need to Know About Reporting Crypto Gains

When you trade or sell crypto tax India, the legal requirement to report profits from cryptocurrency transactions under Indian income tax laws. Also known as cryptocurrency tax India, it applies to every sale, trade, or conversion of digital assets into rupees or other coins. If you bought Bitcoin in 2021 and sold it for a profit in 2024, you owe tax. There’s no gray area—India treats crypto gains as taxable income, just like stocks or real estate.

The rules changed in 2022, and since then, Indian crypto regulations, the legal framework enforcing taxation, reporting, and compliance for digital asset transactions in India have become stricter. You pay a flat 30% tax on profits, with no deductions for losses. That means if you made ₹5 lakh in gains but lost ₹2 lakh on other trades, you still pay tax on the full ₹5 lakh. No offsetting. No exceptions. Plus, a 1% TDS kicks in on every crypto transaction over ₹10,000—taken automatically by exchanges like WazirX or CoinSwitch. This isn’t optional. The Income Tax Department now cross-checks bank statements, wallet addresses, and exchange data using AI tools. If you didn’t report, they’ll find you.

Crypto gains tax India, the specific tax applied to profits from selling or trading cryptocurrencies in India doesn’t care if you used a decentralized exchange, held coins in a hardware wallet, or swapped tokens on a foreign platform. The moment you convert crypto to fiat or another coin, it’s a taxable event. Even gifting crypto to family members triggers tax for the recipient if they later sell it. And yes, mining rewards, airdrops, and staking income? All taxable as income at your slab rate.

What about crypto-to-crypto trades? People think swapping ETH for SOL is just moving money around. It’s not. Every swap is a sale of one asset and a purchase of another—two taxable events. You need to track every transaction: when you bought, at what price, when you sold, and for how much. Tools like Koinly or CoinTracker help, but you’re still responsible for the numbers. The government doesn’t care if you’re new to crypto or just trying to avoid taxes. The law applies equally.

There’s no amnesty program. No grace period. And while some try to hide behind offshore wallets or peer-to-peer trades, the IT department has already started chasing down large wallets linked to Indian IPs. Last year, over 12,000 crypto-related cases were flagged for audit. You don’t need to be rich to get caught—just careless.

Below, you’ll find real breakdowns from traders who’ve been through this—what they got right, what they missed, and how they handled audits. You’ll see how others report staking income, handle losses, and file returns without panic. No fluff. No theory. Just what works in India today.