Crypto gifts, airdrops, staking and mining: how India taxes them
By BtcMedia Research · Updated · Rules checked 22 Oct 2026
Key takeaways
- Crypto gifts from non-relatives are taxable to you if they total more than ₹50,000 in the year; gifts from relatives are exempt.
- Selling or swapping any crypto, however you got it, is taxed at 30% + 4% cess on the gain, with 1% TDS.
- Airdrops, staking and mining have no specific rule in the Act: receipt-time treatment is not settled. Record date and rupee value of every receipt.
India's crypto tax rules were written around one event: the transfer of a virtual digital asset (VDA). Sell, swap or spend crypto and the gain is taxed at a flat 30% plus cess, with only the cost of acquisition deductible. The law also says clearly how gifts of crypto are taxed. For other ways of receiving crypto (airdrops, staking, mining) it is silent, so you need to know which parts are settled and which are not.
At a glance
| How you got it | Tax when received | Tax when sold | Status |
|---|---|---|---|
| Gift of crypto from a relative | Not taxable on receipt (relatives are exempt). | Yes: 30% + cess on the gain when you later sell. | Clear in law |
| Gift of crypto from a non-relative | Taxable if the total value of such gifts in the year exceeds ₹50,000: the whole value is "income from other sources" at your slab rate. | Yes: 30% + cess on the gain when you sell. | Clear in law |
| Crypto received on marriage, by will or inheritance | Exempt from the gift charge. | Yes, on sale. | Clear in law |
| Airdrop | No specific provision. Commonly treated by practitioners as income at receipt (fair market value, slab rate); some argue tax applies only on sale. | Yes: 30% + cess on the gain when you sell. | Not settled |
| Staking rewards | No specific provision. Commonly treated as income from other sources (or business income) at fair market value when received. | Yes, on sale. | Not settled |
| Mining rewards | No specific provision. Commonly treated as business income or income from other sources. | Yes, on sale. | Not settled |
| Selling / swapping any of the above | — | 30% + 4% cess on (sale value − cost of acquisition). No other deduction, no loss set-off. 1% TDS on the sale value (above thresholds). | Clear in law |
Gifts: the ₹50,000 rule
Since the Finance Act, 2022, VDAs are part of the "property" covered by India's gift-tax rules for individuals and HUFs. From 1 April 2026 the rule is in section 92(2)(m) of the Income-tax Act, 2025 (earlier section 56(2)(x) of the 1961 Act). If you receive crypto without paying for it from someone who is not a relative, and the aggregate fair market value of such gifts in the year exceeds ₹50,000, the whole value is taxed as your income from other sources at your slab rate.
Exempt: gifts from relatives, gifts on your marriage, and crypto received under a will or by inheritance. When you later sell gifted crypto, the 30% rate applies to the gain. Keep the gift date, the value and the giver's details.
Airdrops, staking and mining: what is not settled
The Act does not mention airdrops, staking or mining, and CBDT has not issued a clarification on them. Two things are certain: when you sell or swap the tokens, 30% + cess applies to the gain and 1% TDS applies to the sale; and only the cost of acquisition can be deducted, so costs such as mining electricity or validator fees do not reduce the 30% income.
What is uncertain is whether the receipt itself is income. A common, cautious approach is to treat rewards and airdrops as income at their fair market value on the day received (taxed at slab rate, under other sources or business income), and then to use that value as the cost when you sell. Whether that cost is allowed against the 30% income is itself debated. Because the answer can change your tax bill, keep date-wise records of each receipt and its rupee value, and consult a chartered accountant.
Reporting
Each sale or swap goes in Schedule VDA of your return (date acquired, date sold, cost, sale value). Gift income and any receipt-time income go under income from other sources (or business income). If your crypto is held on a foreign exchange, see our Schedule FA guide.
FAQ
Is a crypto gift taxable in India?
Yes, for the person receiving it, if it comes from someone who is not a relative and the total fair market value of such gifts in the tax year exceeds ₹50,000. Virtual digital assets are expressly included in the "property" covered by the gift rules (section 56(2)(x) of the 1961 Act; section 92(2)(m) of the Income-tax Act, 2025). Gifts from relatives, on marriage, or by will or inheritance are exempt.
Who counts as a relative for crypto gifts?
Your spouse; your brothers and sisters; your spouse's brothers and sisters; your parents' brothers and sisters; any lineal ascendant or descendant of you or your spouse; and the spouses of all these people. For an HUF, any member.
Are airdrops taxed in India?
There is no provision that names airdrops. The 30% rate applies when you transfer (sell or swap) the tokens. Whether the airdrop is also income when received is not settled; many practitioners treat it as income at fair market value on receipt. Keep a record of the date and value, and take professional advice.
Are staking rewards taxed at 30%?
The 30% rate applies to income from the transfer of a VDA. Staking rewards are not a transfer, so they are commonly treated as ordinary income (other sources or business) at your slab rate when received, and then the 30% rate applies when you sell them. CBDT has not issued a specific clarification.
Can I deduct mining electricity costs?
Not against the 30% VDA income: only the cost of acquisition is deductible when computing income from transfer of a VDA. How mining receipts are taxed before sale is not specifically addressed in the Act.
Is TDS deducted when I receive a gift or airdrop?
The 1% TDS applies to a payment made as consideration for the transfer of a VDA. A gift or airdrop involves no consideration paid to you, so the usual exchange TDS does not arise on receipt; it applies when you later sell.
Sources
- Income Tax Department: Taxation of Virtual Digital Assets (definition, 30% rule, TDS)
- Income Tax Department: Tax treatment of gifts received by an individual or HUF (VDA included in property)
- Income-tax Act, 1961, section 115BBH (Income Tax Department)
- Income-tax Act, 2025, section 92 (income from other sources, gift charge in clause (2)(m))
- CBDT Circular 14 of 2022 on 1% TDS outside exchanges
Not tax advice. Where the law is unsettled we say so; do not rely on this page for a filing position. Speak to a chartered accountant.
More: 30% crypto tax calculator · profit & net-in-hand calculator · Schedule VDA filing guide · 1% TDS explained
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- Guide published. Sources: Income Tax Department VDA and gift-tax pages, s.115BBH, Income-tax Act, 2025 s.92(2)(m), CBDT Circular 14/2022.