Updated for FY 2025-26 · Section 115BBH & 194S · Schedule VDA
Crypto Tax Calculator (India): 30% Tax & 1% TDS
Add your trades and see your real crypto tax under Section 115BBH — the flat 30%, the 1% TDS already paid, and exactly how much of your losses India won't let you use.
Your crypto tax
You owe ₹46,800 in crypto tax — a flat 30% on ₹1.5 L of gains, with no credit for ₹60,000 of losses.
Tax at 30% (+cess)
₹46,800
1% TDS already paid
₹4,400
Balance to pay
₹42,400
The trap: your losses are wasted
You made ₹1.5 L in gains and ₹60,000 in losses, so your real profit is only ₹90,000. But India taxes the full ₹1.5 Lof gains at 30% — crypto losses can't be set off against your gains, against any other income, or even carried to next year. That makes your effective tax 52% of what you actually earned.
Estimates for FY 2025-26 under Section 115BBH (30% flat + 4% cess) and Section 194S (1% TDS). Only your cost of acquisition is deductible — no brokerage, gas fees or other expenses, and no indexation. Holding period does not matter; there is no long-term rate. TDS shown is 1% of total sale value (deducted by Indian exchanges; foreign/P2P trades may differ) and is adjusted against your final tax. This is general information, not tax advice — report under Schedule VDA and confirm with a CA before filing.
India taxes crypto more harshly than almost anything else
If you trade crypto in India, the tax rules are deliberately punishing, and most people only discover the details when they file. Every gain on a Virtual Digital Asset is taxed at a flat 30% under Section 115BBH — the same whether you held for a day or five years, with no exemption limit, no indexation and no lower long-term rate. You can deduct only what you paid for the coin; brokerage, transfer fees and every other cost are ignored. On top of the 30%, a 1% TDS is skimmed off your sale transactions under Section 194S. This calculator applies all of it to your actual trades so there are no surprises in July.
The rule that ruins portfolios: no loss set-off
Here is the part that genuinely shocks people. In every other kind of investing, a loss reduces your taxable gains. Not with crypto. A loss on one coin cannot be set off against a gain on another, nor against any other income, nor carried forward to next year. So you can lose money across your portfolio as a whole and still owe tax on the individual coins that happened to gain. The tool separates your taxable gains from your wasted losses and shows the effective tax rate on your real profit — which, in a volatile year, can climb well above 30%, sometimes past 50%.
The 1% TDS is a prepayment, not an extra tax
Many investors panic about the 1% TDS, thinking it's money gone. It isn't. The 1% is deducted on your sale value(not your profit) by Indian exchanges once your trades cross ₹50,000 in a year, and it's simply an advance against your final 30% bill. When you file, it's credited back: if your TDS adds up to more than your tax due — common in a losing year — you get a refund. The calculator shows your TDS alongside your 30% liability and tells you whether you still owe money or are due a refund. Note that the TDS jumps to 20% if the exchange doesn't have your PAN, so keep your KYC current.
Reporting: Schedule VDA and keeping records
From FY 2025-26 every crypto transaction must be reported in the ITR's dedicated Schedule VDA, with acquisition cost and sale value for each trade. The tax department now receives transaction data directly from exchanges through the TDS trail, so the days of quietly leaving crypto off your return are over. Keep a complete log of every buy and sell — the numbers you enter here are exactly what you'll need to report — and when in doubt, run it past a CA, because crypto is one of the most scrutinised lines on the return.
Worked example: Arjun's mixed crypto year
Setup: Arjun bought Bitcoin for ₹2,00,000 and sold it for ₹3,50,000, and bought Ethereum for ₹1,50,000 but sold it for just ₹90,000.
His gains and losses. Bitcoin gained ₹1,50,000; Ethereum lost ₹60,000. His real profit for the year is ₹90,000. But under Section 115BBH, the ₹60,000 loss is ignored.
His tax. 30% is charged on the full ₹1,50,000 gain = ₹45,000, plus 4% cess = ₹46,800. The ₹60,000 Ethereum loss saves him nothing. On his real ₹90,000 profit, that's an effective tax rate of about 52%.
TDS and balance. 1% TDS was deducted on his ₹4,40,000 of total sales = ₹4,400, already sitting with the government. So when he files, he pays the balance of ₹46,800 − ₹4,400 = ₹42,400. Had both coins lost money, his tax would be zero and the ₹4,400 TDS would come back as a refund.
Frequently asked questions
How is cryptocurrency taxed in India in 2026?
All gains from transferring crypto and other Virtual Digital Assets are taxed at a flat 30% under Section 115BBH, plus any applicable surcharge and 4% cess. This rate is the same no matter how long you held the asset — there is no short-term or long-term distinction and no benefit for holding longer. You can only deduct your cost of acquisition (what you paid for the coin); you cannot deduct brokerage, exchange fees, internet costs or any other expense, and there is no indexation. Separately, a 1% TDS is deducted on your sale transactions under Section 194S. The Union Budget 2025 kept all of this unchanged.
Can I set off my crypto losses against my gains?
No — and this is the rule that catches most investors out. Under Section 115BBH, a loss from one crypto cannot be set off against a gain from another crypto, against any other head of income (like salary or capital gains), and it cannot be carried forward to future years. So if you gained ₹1,00,000 on Bitcoin and lost ₹60,000 on Ethereum in the same year, you still pay 30% on the full ₹1,00,000 — the ₹60,000 loss is simply wasted. The calculator above shows exactly how much of your loss is lost this way and what it does to your effective tax rate.
What is the 1% TDS on crypto and can I get it back?
Under Section 194S, a 1% Tax Deducted at Source applies to the sale value of your crypto transactions (not your profit). Indian exchanges deduct it automatically once your transactions cross ₹50,000 in a year for most individuals (₹10,000 for some), and it rises to 20% if the exchange doesn't have your PAN. The 1% TDS is not an extra tax — it's a prepayment. It's credited against your final 30% tax liability when you file your return, so if your TDS is more than your tax due (for example, in a loss-making year), you get the balance back as a refund. The tool shows your TDS and whether you owe more or are due a refund.
Do I have to pay crypto tax even if I made an overall loss?
Possibly yes. Because losses can't offset gains, you're taxed on every coin that gained, even if your portfolio lost money overall. If you made ₹1,00,000 on one coin and lost ₹1,50,000 on another, your net result is a ₹50,000 loss — but you still owe 30% on the ₹1,00,000 gain. This is one of the harshest features of India's crypto tax regime, and the calculator makes it visible by separating your taxable gains from your wasted losses.
Is there a long-term capital gains rate for crypto in India?
No. Unlike shares, property or gold, crypto and other VDAs have no long-term capital gains treatment. Whether you hold for one day or five years, every gain is taxed at the same flat 30%. There is no ₹1.25 lakh exemption, no indexation, and no reduced rate for patience. If you also deal in listed shares or property, those follow completely different (and gentler) rules — use our capital gains calculator for those.
How do I report crypto in my income tax return?
From FY 2025-26, crypto gains must be reported in the dedicated Schedule VDA section of the ITR form, transaction by transaction, showing your acquisition cost and sale value. You'll typically file ITR-2 (if investing) or ITR-3 (if trading as a business). The 1% TDS deducted appears in your Form 26AS / AIS and is claimed there. Because the reporting is now detailed and the tax authorities receive exchange data, under-reporting is risky — keep a full record of every trade.
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