30% Crypto Tax India: A Straightforward Guide

When dealing with 30% crypto tax India, the rule that taxes cryptocurrency gains at a flat 30% rate for Indian residents. Also known as India's crypto capital gains tax, it affects anyone who sells, swaps or earns crypto in the country. This tax is part of a broader crypto tax, the system that taxes digital asset transactions based on local law, and it specifically falls under the capital gains tax, a tax on profit made from selling an asset for more than its purchase price. Understanding how these pieces fit together saves you from surprise bills and keeps your compliance on track.

How the 30% Rate Connects to Filing and Compliance

First, the tax filing, the process of reporting income, deductions, and taxes owed to the tax authority you’ll need to complete is where the rate becomes practical. The Indian Income Tax Act treats crypto profits as “income from other sources,” so you report them on the ITR‑2 or ITR‑3 form, depending on your other income streams. The tax law requires you to calculate the total gain in INR, apply the flat 30% rate, and pay any due amount by the standard filing deadline (usually July 31 for individuals). Failure to declare crypto gains can trigger penalties, interest, and even scrutiny from the tax department.

What this means for your strategy is simple: keep detailed records of every purchase, sale, swap, and airdrop. Use a spreadsheet or a dedicated crypto tax tool to convert each transaction to INR at the time of the event. The more accurate your data, the easier it is to fill out the tax return and avoid errors. Keep an eye on related rules, such as the 1% TDS (tax deducted at source) that exchanges may withhold on large transactions, and the requirement to disclose foreign crypto holdings if they exceed a certain threshold. Below, you’ll find reviews of exchanges, deep dives into airdrops, and practical guides that together give you a full picture of how to navigate the 30% crypto tax landscape in India.