India’s taxation framework for virtual digital assets (VDAs) is clearly defined, covering gains, transfers, and other crypto-related income. Under Section 115BBH of the Income Tax Act, profits from the sale of VDAs are taxed at a flat 30%, with an additional 4% cess and applicable surcharge.

Section 194S mandates a 1% tax deducted at source (TDS) on all VDA transfers, applying to both individual and institutional transactions.

Domestic exchanges in India have introduced features such as automatic 1% TDS deductions and integrated crypto tax calculators to facilitate compliance. Income from mining, staking, airdrops, and salaries paid in crypto is also taxable, as per CoinDCX.

Taxpayers are required to report all crypto-related activity for the previous financial year, FY2024-25. From thi

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