Crypto Tax Calculator

Cryptocurrency in India is taxed at a flat rate of 30% on profits under Section 115BBH of the Income Tax Act, effective from FY 2022-23. This applies to all virtual digital assets (VDAs) including Bitcoin, Ethereum, NFTs, and other cryptocurrencies. The 30% tax rate is applicable regardless of the taxpayer's income slab, and no deductions or exemptions (other than the cost of acquisition) are allowed. Additionally, a 1% TDS (Tax Deducted at Source) is applicable on crypto transfers exceeding ₹10,000 (₹50,000 for specified persons) under Section 194S. Our Crypto Tax Calculator helps you compute your exact tax liability on crypto gains.

Section 115BBH of the Income Tax Act was introduced by the Finance Act 2022 to specifically tax income from Virtual Digital Assets (VDAs) including cryptocurrencies and NFTs. Under this section, income from transfer of VDAs is taxed at a flat 30% rate with no allowance for any deduction or set-off except the cost of acquisition. This means you cannot deduct exchange fees, gas fees, internet charges, or any other expense from your crypto gains. Losses from crypto cannot be set off against any other income (including other capital gains) and cannot be carried forward to future years.

Under Section 194S of the Income Tax Act, a 1% TDS (Tax Deducted at Source) is applicable on the transfer of Virtual Digital Assets (cryptocurrencies, NFTs) if the transaction value exceeds ₹10,000 in a financial year (₹50,000 for specified persons like individuals/HUFs with business income). The TDS is deducted by the exchange or the buyer (in peer-to-peer transactions) and deposited with the government. This TDS can be claimed as a credit against your total tax liability when filing your Income Tax Return. The Crypto Tax Calculator factors in TDS amounts to show your net tax payable or refund.

No, under Section 115BBH, losses from the transfer of Virtual Digital Assets cannot be set off against any other income, including salary, business income, or other capital gains. Furthermore, crypto losses cannot be carried forward to future years. This means if you make a ₹1 lakh profit on Bitcoin and a ₹50,000 loss on Ethereum, you cannot net them off — you still pay 30% tax on the ₹1 lakh Bitcoin profit separately. However, you can set off losses within the same VDA category if they arise from the same asset. It is crucial to track each transaction carefully for accurate tax reporting.

Cryptocurrency income must be reported in Schedule VDA (Virtual Digital Assets) of your Income Tax Return (ITR-2 or ITR-3). You need to provide details of each transaction including: date of transfer, cost of acquisition, sale consideration, and the head of income (capital gains or business income). For investors, crypto gains are reported as capital gains under Section 115BBH. For traders who trade frequently, it may be classified as business income. All crypto transactions must be reported regardless of whether there is a profit or loss. Failure to report crypto income can attract penalties and prosecution under the Income Tax Act.

Yes, crypto-to-crypto trading is taxable in India. Each swap or exchange of one cryptocurrency for another is considered a transfer under Section 2(47) of the Income Tax Act and triggers a taxable event. For example, exchanging Bitcoin for Ethereum is treated as selling Bitcoin (taxable) and buying Ethereum. The fair market value of the received crypto in INR is considered the sale consideration. Additionally, 1% TDS is applicable on each crypto-to-crypto transaction. This makes active crypto trading extremely tax-inefficient in India, and traders must account for taxes on every single swap transaction.

The cost of acquisition for cryptocurrency is the purchase price paid in INR to acquire the virtual digital asset. For crypto purchased on exchanges, this is the actual amount paid including the exchange's buying price per unit. For crypto received as gifts, the cost of acquisition is nil for the recipient, but gifts from specified relatives are not taxed at the time of receipt. For mining rewards, the cost of acquisition is considered nil, meaning the entire sale proceeds are taxed at 30%. Our Crypto Tax Calculator uses FIFO (First In First Out) method by default to match purchases with sales for accurate cost of acquisition determination.

The Crypto Tax Calculator simplifies the complex process of computing cryptocurrency tax liability in India. Enter your crypto purchase details (date, amount, price) and sale details (date, amount, price), and the calculator automatically: (1) Determines the cost of acquisition using FIFO method, (2) Computes gains or losses for each transaction, (3) Applies the 30% flat tax rate under Section 115BBH, (4) Calculates the 1% TDS already deducted, (5) Shows net tax payable or refund. The calculator also generates a transaction-wise report that can be used for ITR filing and provides the Schedule VDA data in the required format.