Crypto Gains Tax India: What You Owe and How to Avoid Mistakes

When you sell crypto gains tax India, the tax you pay on profits from selling or trading cryptocurrency in India. Also known as capital gains tax on crypto, it applies whether you traded Bitcoin for Ethereum, sold Solana for INR, or used BNB to buy an NFT. Since 2022, India treats all crypto profits as taxable income—no exceptions, no gray areas. Even if you didn’t convert to rupees, swapping one coin for another triggers a tax event. This isn’t optional. The Income Tax Department tracks transactions through exchanges, wallet analytics, and bank deposits. If you made a profit, you owe tax.

Most people think crypto is like stocks, but it’s not. With stocks, you get a 12-month window for lower long-term rates. In India, crypto, digital assets traded on blockchain networks like Ethereum or Binance Smart Chain. Also known as cryptocurrency, it includes coins, tokens, and NFTs. are taxed at a flat 30% on every profit, no matter how long you held them. Plus, there’s no deduction for losses. If you bought Ethereum for ₹50,000 and sold it for ₹70,000, you pay ₹6,000 in tax—even if you lost ₹40,000 on another trade last month. Losses don’t offset gains. That’s different from stocks, mutual funds, or real estate. And don’t forget the 1% TDS. Every time you sell crypto on an Indian exchange, they automatically withhold 1% of the sale value. That’s yours to claim back later, but only if you file correctly.

Reporting isn’t just about filling Form 16. You need to track every transaction: buys, sells, swaps, staking rewards, airdrops, even NFT sales. blockchain, a public digital ledger that records all crypto transactions across decentralized networks. Also known as distributed ledger technology, it’s the backbone of every crypto trade you make. tools like Koinly or CoinTracker help, but they’re not magic. You still need to match dates, amounts, and wallet addresses. Many Indians get audited because they report only their exchange buys and forget peer-to-peer trades or DeFi swaps. If you used SushiSwap on BSC or traded on AltMarket, those counts too. The tax man doesn’t care if you didn’t cash out. He cares if you moved value.

What about airdrops? If you got free tokens from a project like ASK or HERO, those are taxable as income when you receive them. Same with staking rewards. Even if you didn’t sell, you owe tax on the INR value at the time you got the coins. And yes, that includes rewards from HbarSuite or Marnotaur NFTs. The rules are clear: every gain, every reward, every swap—it’s all taxable. No one’s getting away with ignoring this anymore. The government has tools to trace wallets, and exchanges are required to report user data.

You don’t need to panic, but you do need to act. Keep records. Use a simple spreadsheet if you’re not ready for software. Know your cost basis. Track your sale dates. Don’t assume your exchange will send you the right tax form—most won’t. And if you’ve traded in the last three years, it’s not too late to fix mistakes. India’s crypto tax system is harsh, but it’s predictable. Understand it. Follow it. Stay out of trouble. Below, you’ll find real guides on crypto coins, exchange reviews, and airdrop details—all filtered through the lens of what matters most: your tax liability, your risk, and your bottom line.