What is the tax on crypto and virtual digital assets?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerProfits on crypto and other virtual digital assets are taxed at a flat 30% (plus surcharge and cess) under Section 115BBH, with no deduction except cost and no set-off of losses against other income. In addition, 1% TDS applies on transfers above the threshold under Section 194S.

The 30% flat tax

Every gain is taxed at 30% — you can’t reduce it with other expenses or set crypto losses against salary, business or even other crypto gains.

1% TDS

Section 194S deducts 1% on transfers above the limit, so the department tracks your trades. Confirm the current threshold.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.