Crypto Tax Calculator India — 30% Tax on VDA

Quick answer

In India, profit on selling, swapping or spending crypto and other virtual digital assets (VDA) is taxed at a flat 30% plus 4% cess under Section 115BBH, whatever your income or holding period. Only the purchase cost is deductible. Losses cannot be set off against any income or carried forward. On sales, 1% TDS is deducted under Section 194S, which you claim as credit in your ITR.

What this crypto tax calculator does

This calculator gives you a fast estimate of the tax on your crypto gains for the year and tells you how the 1% TDS already cut by your exchange compares with that tax. It answers two practical questions: how much tax do I owe on my crypto profit, and will I have to pay more or get a refund when I file?

It works on totals. You enter what you paid to buy the coins you sold and what you received when you sold them. The calculator finds the gain, applies 30% plus 4% cess, works out 1% TDS on the sale value, and shows the balance payable or the refund due on this part of your income.

Because it works on totals, it is best for people with a simple year: a handful of sales, mostly in profit. If you had both profitable and loss-making trades, read the section on why losses are a trap below, because the real tax can be higher than a simple total suggests.

How to use the calculator, step by step

1. Purchase cost — enter the total amount you paid to acquire the units you sold during the year, in rupees. Include only the units actually sold. If you bought 1 ETH but sold half, enter the cost of that half.
2. Sale value — enter the total consideration you received for those units. For a sale on an Indian exchange this is the INR amount credited. For a crypto-to-crypto swap, use the rupee value of what you received at the time of the swap.
3. Number of sale transactions — enter how many sales or swaps you made. This helps you keep track of what you will have to list line by line in your return; the tax result itself is driven by the two amounts above.
4. Read the result. If you made a profit, the heading shows the tax (30% + 4% cess). The line below shows the 1% TDS on your sale value and whether there is a balance to pay or a refund due.
5. If you made an overall loss, the result tells you there is no tax on this amount, but that the loss cannot be set off. The TDS line still shows how much was deducted, which you can claim as credit.

Working out the purchase cost

The purchase cost is what you actually paid in rupees for the units you sold. If you bought with INR on an Indian exchange, it is the INR amount debited for that buy. If you got the coin by swapping another token, its cost is generally the rupee value at which you acquired it in that swap, which is also the sale value you used for the token you gave up.

Do not enter the current market value of coins you still hold. Unsold coins are not taxed until you transfer them, however much their price has risen. Only realised gains, on actual sales, swaps or spends, count for the year.

Working out the sale value

The sale value is the full consideration before TDS. If your exchange credited ₹99,000 after deducting ₹1,000 TDS on a ₹1,00,000 sale, enter ₹1,00,000. The ₹1,000 deducted is your TDS credit, not a reduction in the sale value.

The result list also shows the gain, the tax with cess and the TDS credit you should see in Form 26AS or AIS. Use those three figures when you sit down to file.

The rule explained: Section 115BBH and Section 194S

What counts as a virtual digital asset

The law defines virtual digital assets broadly. Cryptocurrencies such as Bitcoin and Ethereum, stablecoins, utility and governance tokens, and most NFTs are covered. Indian rupees, foreign currency and gift cards or vouchers specifically excluded by notification are not VDAs. If an asset is generated through cryptographic means and can be transferred or traded electronically, assume it is covered unless you have a clear exclusion.

Flat 30% on income from transfer of VDA

Section 115BBH taxes income from the transfer of a virtual digital asset at a flat 30%. Health and education cess of 4% is added on top, so the effective rate is 31.2% before any surcharge. The rate does not change with your total income, your age or how long you held the asset. There is no short-term or long-term split like there is for shares.

The same rate applies whether you treat the activity as investment or as trading. Even a full-time trader who reports crypto as business income pays 30% on the VDA income and gets no deduction for business expenses against it.

Only the cost of acquisition is deductible

The law allows no deduction for any expenditure or allowance other than the cost of acquiring the asset. Internet bills, laptops, software subscriptions, advisory fees and electricity are not deductible. Platform and brokerage charges are generally not allowed as a separate deduction either; if a fee was part of what you paid to acquire the coin, ask an expert before including it in cost.

No set-off, no carry forward

A loss from transferring a VDA cannot be set off against any other income, including salary, business, other capital gains or gains on other VDAs. It also cannot be carried forward to later years. In the other direction, losses from other heads (for example, a house property loss) cannot be set off against your VDA gains.

1% TDS on the sale value

Section 194S requires the buyer to deduct 1% TDS on the consideration paid for a VDA. On Indian exchanges, the exchange deducts it from your sale proceeds and deposits it against your PAN. TDS applies once the total consideration in the year crosses ₹50,000 for specified persons (broadly individuals and HUFs without large business turnover) and ₹10,000 for others.

TDS is not an extra tax. It is an advance payment of your income tax. It shows up in Form 26AS and AIS, and you claim it in your return. If TDS is more than your total tax liability, the excess is refunded after your return is processed.

Rates and limits at a glance

Surcharge applies on top for very high incomes, using the normal income-based bands. The calculator does not add surcharge, so if your total income is above ₹50 lakh, have your final figure checked.

Note: the Income-tax Act, 2025 applies from tax year 2026-27 and renumbers sections. This page and the calculator use the familiar section numbers (115BBH, 194S) and the rates shown above.

Worked examples with real numbers

Example 1: a simple profitable year

Riya bought Bitcoin and Ethereum for a total of ₹2,00,000 and sold them during the year in 5 transactions for ₹3,50,000.

• Gain = ₹3,50,000 − ₹2,00,000 = ₹1,50,000
• Tax at 30% = ₹45,000
• Cess at 4% = ₹1,800
• Total tax = ₹46,800
• TDS at 1% of sale value = ₹3,500
• Balance to pay = ₹46,800 − ₹3,500 = ₹43,300

This is exactly what the calculator shows when you enter ₹2,00,000, ₹3,50,000 and 5. Riya should pay the ₹43,300 as advance tax or self-assessment tax before filing, otherwise interest applies.

Example 2: an overall loss

Arjun bought tokens for ₹5,00,000 and sold them for ₹4,20,000.

• Loss = ₹80,000
• Tax on VDA = nil
• TDS deducted = 1% of ₹4,20,000 = ₹4,200

The ₹80,000 loss is simply lost for tax purposes. It cannot reduce his salary income or be carried forward. But the ₹4,200 TDS is still his money: he claims it in his ITR, and it reduces his total tax or comes back as a refund.

Example 3: profit on one coin, loss on another

Meera made ₹1,00,000 profit on coin A (bought for ₹2,00,000, sold for ₹3,00,000) and a ₹60,000 loss on coin B (bought for ₹2,00,000, sold for ₹1,40,000). In total she paid ₹4,00,000 and received ₹4,40,000.

If she enters the totals, the calculator shows a gain of ₹40,000 and tax of ₹12,480. That is too low. Since the loss on coin B cannot be set off against the gain on coin A, the correct taxable gain is ₹1,00,000:

• Tax at 30% + 4% cess on ₹1,00,000 = ₹31,200
• TDS = 1% of ₹4,40,000 = ₹4,400
• Balance to pay = ₹31,200 − ₹4,400 = ₹26,800

Example 4: TDS more than the tax

Kabir bought a token for ₹60,000 and sold it for ₹61,000. His total sales for the year cross the ₹50,000 threshold, so 1% TDS is deducted.

• Gain = ₹1,000
• Tax at 30% + 4% cess = ₹312
• TDS = 1% of ₹61,000 = ₹610
• Excess TDS = ₹610 − ₹312 = ₹298

The calculator shows a refund due of ₹298 on this part. In the actual return, TDS is set against your total tax for the year, so whether you get money back depends on your other income and taxes paid too.

The lesson from Example 3: when you have both gains and losses, run the calculator only on your profitable transactions. Enter the cost and sale value of the winners alone to get the tax, and work out TDS separately on the total sale value of everything you sold.

Why losses are the biggest trap

In most other investments, a bad trade softens the tax on a good one. Crypto does not work that way. Every profitable transfer is taxed on its own and every loss is ignored. Netting your whole portfolio, as many portfolio trackers do, can understate your tax.

The safest way to work is transaction by transaction. For each sale or swap, match the units sold with what they cost you, find the gain or loss, and add up only the gains. Exchanges usually provide a tax report or trade history that helps with this. Keep it, because the same detail is needed for Schedule VDA.

Within a single coin, people often buy in many lots at different prices. Use a consistent and reasonable method to work out the cost of the units sold, keep your working, and apply the same method across the year. If you are unsure which method fits your records, take advice before you file rather than after a notice.

Special cases you should know

Crypto-to-crypto swaps

Swapping one token for another is a transfer of the first token. The gain is the rupee value of what you received minus the cost of what you gave up. TDS also applies to such swaps. On Indian platforms this is usually handled by the exchange; on peer-to-peer and foreign platforms, the responsibility can fall on the parties.

Spending crypto

Paying for goods or services in crypto is also a transfer. You are taxed on the difference between the value of what you got and the cost of the crypto you spent.

Withdrawing INR to your bank

Moving rupees from your exchange wallet to your bank account is not itself a taxable event. The tax arises at the point you sell or swap the crypto. Similarly, moving coins between your own wallets or exchanges is not a transfer to another person, but keep records so you can show it was your own movement.

When TDS was not deducted

If you sold on a platform that did not deduct TDS, the 30% tax on your gain is still payable. You simply have no TDS credit to set against it, so the whole tax is paid by you as advance tax or self-assessment tax.

Gifts of crypto

A VDA received as a gift is treated like other gifts under the income tax law. Gifts from specified relatives, or on your marriage, are not taxable. Gifts from others are taxable in your hands as income from other sources if the total value of such gifts in the year exceeds ₹50,000. When you later sell the gifted asset, the 30% rule applies to the gain.

Mining, staking and airdrops

These are areas where the tax treatment depends on facts, and there is no single simple rule that fits everyone. The cost of mining (electricity, hardware) is not deductible against the 30% income on transfer. Rewards received may also be taxable when received. If you have meaningful income from these activities, take expert advice.

NFTs

Most NFTs fall within the definition of virtual digital assets, so the same 30% tax and 1% TDS rules apply. Some NFTs that only represent ownership of a real, tangible asset have been excluded by notification. Check which category yours falls into before filing.

Foreign exchanges and wallets

A foreign exchange may not deduct Indian TDS, but the gain is still taxable in India if you are a resident. Residents must also report foreign assets in the return where required. Keep complete trade history from every platform you use, including self-custody wallets.

Trading as a business

If you trade frequently and treat it as a business, you report the income under business and file ITR-3. The rate stays 30%, and business expenses still cannot be deducted against VDA income. The only practical change is the form and the schedules you fill.

Common mistakes to avoid

• Netting gains with losses. As shown in Example 3, this understates the tax. Add up gains only.
• Treating TDS as the final tax. 1% TDS is only a small advance payment. Tax on a profit is 31.2% of the gain, which is usually much more than TDS.
• Forgetting swaps. Every crypto-to-crypto conversion is a taxable event, not just withdrawals to your bank.
• Claiming fees and expenses. Only cost of acquisition is allowed. Laptop, internet, subscriptions and electricity are not deductible.
• Using ITR-1 or ITR-4. VDA income must be reported in Schedule VDA, which is in ITR-2 and ITR-3. Filing the wrong form can make the return defective.
• Ignoring AIS. Your exchange reports TDS and transactions against your PAN. If the return does not match AIS and Form 26AS, expect questions from the department.
• Missing advance tax. A large crypto profit can push your tax due above ₹10,000 after TDS, making advance tax applicable. Paying late means interest under Sections 234B and 234C.
• Expecting the 87A rebate. Even if your total income is small, the rebate does not wipe out tax on VDA income.

Records and documents to keep

Good records make crypto filing straightforward. Before you start your return, collect:

• Complete trade history or tax report from every exchange you used, for the full financial year.
• Wallet transaction records for transfers in and out of self-custody wallets.
• Bank statements showing INR deposits to and withdrawals from exchanges.
• Form 26AS and AIS, downloaded from the income tax portal, to check the TDS credited under Section 194S.
• Your working for cost of acquisition, especially where you bought in several lots.
• Details of any gifts, airdrops or rewards received, with dates and values.

Keep these records for several years after filing. The department can ask questions about a return well after it has been processed, and exchange data may not always be easy to download later, especially if an account is closed or a platform stops operating.

You can download Form 26AS and AIS after logging in to the income tax e-filing portal. If you find the AIS confusing, our AIS and 26AS guide explains each part in plain words.

How this connects to your ITR

Crypto income goes into Schedule VDA. For each transfer, the schedule asks for the date of acquisition, date of transfer, the head of income (capital gains or business), the cost of acquisition and the consideration received. The income from this schedule is then taxed at the special 30% rate in the tax computation.

If crypto is your only extra income besides salary and you are not running a business, ITR-2 is usually the form. If you report it as business income, or you have other business or professional income, ITR-3 applies. Our ITR form finder can help you confirm the right one.

The TDS deducted under Section 194S is claimed in the TDS schedule. It should match what appears in Form 26AS. Any mismatch should be resolved before filing, usually by checking with the exchange that deducted it.

Your crypto tax is added to the tax on the rest of your income, such as salary. To see your complete picture, work out your regular tax in the income tax calculator and add the VDA tax from this page. The 30% rate stays the same whichever regime you choose.

Paying the tax on time

Tax on crypto gains is not paid only at filing time. If your total tax for the year, after TDS, is ₹10,000 or more, advance tax applies. Instalments are due by 15 June, 15 September, 15 December and 15 March. If you book a large gain mid-year, pay the tax with the next instalment rather than waiting for the return.

For example, if Riya from Example 1 booked her ₹1,50,000 gain in August, the ₹43,300 balance should be built into her September, December and March instalments, along with tax on her other income not covered by TDS. Paying the whole amount only at the time of filing next July would attract interest for the delay.

Salaried people sometimes ask their employer to deduct extra TDS to cover crypto tax. Employers deduct TDS based on salary and any other income you declare to them, so this is possible if your employer accepts it, but many people find it simpler to pay advance tax themselves through the e-pay tax facility on the income tax portal.

The advance tax calculator shows how much is due by each date. Any shortfall at the end of the year is paid as self-assessment tax before you file. For most individuals without an audit, the ITR due date is 31 July after the financial year ends.

Is this calculator enough for you?

The calculator gives a reliable estimate when your year is simple: a few profitable sales on an Indian exchange that deducted TDS. In that case, the numbers it shows are the numbers you will report.

Before relying on the result, run through this short check:

• Have you entered the cost and sale value only for units actually sold this year?
• If you had any loss-making trades, did you leave them out of the calculation and use only profitable ones?
• Does the TDS in Form 26AS match 1% of your sale value on Indian exchanges?
• Have you included swaps and crypto spends, not just sales for INR?

You should get expert help if any of these apply: you had both profits and losses across many trades; you traded on foreign or peer-to-peer platforms; you received staking rewards, airdrops or mining income; you treat crypto as a business; your income is high enough for surcharge; or you have received a notice about VDA transactions. In these situations, small errors in cost or classification can change your tax significantly.

Get it checked by an expert

Crypto returns go wrong most often at the transaction level, not the rate. A TaxCaller expert can go through your exchange reports, work out the gain transaction by transaction, match TDS with Form 26AS, fill Schedule VDA correctly and file your ITR. You are told the fee upfront before any work starts, and the first call is free. See our income tax filing service to get started.