Crypto tax sections: where 115BBH, 194S and the rest went in the Income-tax Act, 2025
By BtcMedia Research · Updated · How we source
From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act, so every crypto section you knew got a new number. The 30% tax and the 1% TDS did not change. Here is the full map, checked line by line in the Gazette text.
Old section → new section: crypto tax finder
Type a section from the 1961 Act, a new section number or a topic (TDS, gift, loss). Every answer links to the Gazette page with the new text.
30% tax on crypto gains
Income from transferring a VDA is taxed at 30% (plus 4% cess, so 31.2%), whatever your slab. The rate did not change.
No match. Try 115BBH, 194S, 2(47A) or "TDS".
All crypto sections (19 of 19 sections shown)
-
2(47A) is now 2(111)
What counts as a virtual digital asset
Four limbs: crypto-style tokens, NFTs, other notified digital assets, and in clause (d) any "crypto-asset" on a cryptographically secured ledger.
Gazette p. 23 -
2(47) is now 2(109)
Meaning of "transfer"
The general definition of transfer (sale, exchange, relinquishment and so on) moved to clause (109).
Gazette p. 22 -
Previous year / assessment year is now 3 (tax year)
Which year you are taxed for
The two-year "previous year / assessment year" pair is replaced by one "tax year": 1 April to 31 March.
Gazette p. 24 -
115BBH(1) is now 194(1), Table Sl. No. 4
30% tax on crypto gains
Income from transferring a VDA is taxed at 30% (plus 4% cess, so 31.2%), whatever your slab. The rate did not change.
Gazette p. 218 -
115BBH(2)(a) is now 194(1), Table Sl. No. 4, column E (a)
Only cost of acquisition is deductible
No deduction for any expense or allowance except the cost of acquisition, and no set-off against it.
Gazette p. 218 -
115BBH(2)(b) is now 194(1), Table Sl. No. 4, column E (b)
Crypto losses cannot be used
A loss from transferring a VDA cannot be set off against any other income and cannot be carried forward.
Gazette p. 218 -
115BBH, Explanation is now 194(2)(n)
"Transfer" applies to every VDA
For this 30% rule, "transfer" covers a VDA whether or not it is a capital asset, so traders and investors are treated alike.
Gazette p. 220 -
194S(1) is now 393(1), Table Sl. No. 8(vi)
1% TDS when you sell
Any person paying a resident for the transfer of a VDA deducts 1% TDS. Same rate as before.
Gazette p. 403 -
194S(1), proviso is now 393(1), Note 6 to the Table
Paid in kind or in crypto
If the payment is wholly or partly in kind, for example another crypto, the payer must make sure the tax is paid before releasing it.
Gazette p. 404 -
194S(3) is now 393(4), Table Sl. No. 12
When no TDS is due
No TDS if the year's total stays within ₹50,000 (specified persons, e.g. most individuals and HUFs) or ₹10,000 (everyone else).
Gazette p. 414 -
194S(2) and 203A is now 397(1)(c)(ii)
No TAN needed for individuals
A specified person deducting this TDS does not need a TAN (tax deduction account number).
Gazette p. 420 -
194S(4) is now 393(1), Note 4 to the Table
Crypto TDS beats e-commerce TDS
Where a payment fits both, the crypto TDS row 8(vi) applies, not the e-commerce row 8(v) (earlier section 194-O).
Gazette p. 404 -
194R is now 393(1), Table Sl. No. 8(iv)
Business benefits or perks
10% TDS on a business benefit or perquisite above ₹20,000 a year. Note 6 covers such benefits given in crypto.
Gazette p. 403 -
206AA is now 397(2)(b)(i)
TDS without PAN
If you do not give your PAN, TDS is the highest of the normal rate, the rate in force or 20%. For crypto that means 20%.
Gazette p. 420 -
195 is now 393(2)
Payments to non-residents
TDS on payments to non-residents, including for crypto, is now under section 393(2).
Gazette p. 404 -
56(2)(x) is now 92(2)(m) + 92(5)(f)(x)
Crypto received as a gift
Crypto received without (or for too little) payment is taxed as income if its value exceeds ₹50,000; "property" includes a VDA.
Gazette p. 139 -
69A / 69B is now 104
Unexplained assets
Money, bullion, jewellery or other valuables you cannot explain are added to income; under the new Act "asset" names VDAs outright.
Gazette p. 147 -
115BBE is now 195
Tax on unexplained income
Income added as unexplained (section 104 etc.) is taxed at 60%, with no deduction or set-off.
Gazette p. 220 -
285BAA is now 509
Crypto-asset reporting by platforms
The duty on reporting entities to file information about crypto-asset transactions moved to section 509.
Gazette p. 477
Old numbers apply to sales up to 31 March 2026; new numbers from 1 April 2026.
The short version
The Income-tax Act, 2025 (Act No. 30 of 2025) got the President's assent on 21 August 2025 and applies from 1 April 2026 (Gazette of India). It renumbered everything. For crypto, the three numbers people search most moved like this:
- 115BBH (30% tax on crypto gains) → section 194(1), Table Sl. No. 4
- 194S (1% TDS when you sell) → section 393(1), Table Sl. No. 8(vi)
- 2(47A) (what a "virtual digital asset" is) → section 2(111)
Use the finder above for every other crypto-related section, each with the Gazette page where the new text sits. The old wording of section 194S is still on the Income Tax Department site, and the department's own Act vs Bill utility lets you read any new section in full.
Which Act applies to your sale?
It depends on the date of the sale, not the date you file:
- Sold on or before 31 March 2026: the 1961 Act. Your ITR for AY 2026-27 still cites section 115BBH and Schedule VDA, and TDS was under section 194S. See our Schedule VDA filing guide.
- Sold on or after 1 April 2026: the 2025 Act. This is tax year 2026-27, and you file for it in 2027.
Section 536 of the new Act repeals the 1961 Act but says that notices, assessments, penalties and appeals for any tax year that began before 1 April 2026 still run under the old Act. So a notice about your 2025-26 crypto sales will quote the old section numbers.
The maths did not change
| Example | 1961 Act | 2025 Act |
|---|---|---|
| Tax on a ₹1,00,000 crypto gain (30% + 4% cess) | ₹31,200 (115BBH) | ₹31,200 (194, Sl. No. 4) |
| TDS when an exchange pays you ₹1,00,000 for a sale | ₹1,000 (194S) | ₹1,000 (393, Sl. No. 8(vi)) |
| TDS if you have not given your PAN | 20% (206AA) | 20% (397(2)) |
| Gift of crypto worth ₹60,000 from a non-relative | Taxable (56(2)(x)) | Taxable (92(2)(m)) |
| ₹40,000 loss on one coin against a gain on another | Not allowed | Not allowed (column E (b)) |
The cess figure assumes no surcharge. Work out your own number with the India crypto tax calculator, and the TDS side with the 1% TDS guide, which also maps the new TDS form numbers (Form 141, 142 and 168).
What we found when we counted the Gazette
We searched the full 572-page Gazette text of the new Act. The phrase "virtual digital asset" appears 17 times, in just 10 of its 536 sections: 2, 92, 104, 194, 261, 295, 301, 393, 499 and 524. The word "crypto-asset" appears 6 times, only in section 2 (the definition) and section 509 (reporting by platforms).
The split is the interesting part. Only 4 of those 10 sections decide what crypto is and how it is taxed (2, 92, 194 and 393). The other 6 (104, 261, 295, 301, 499 and 524) are about unexplained assets, searches, block assessments and recovery of unpaid tax. In other words, the new law lists crypto alongside cash, bullion and jewellery when the department looks for undisclosed wealth. Under section 195, income treated as unexplained is taxed at 60%.
One more detail: crypto's 30% row (Sl. No. 4) sits in the same table in section 194 as lottery and card-game winnings (Sl. No. 1, 30%) and online-game winnings (Sl. No. 5, 30%). The law groups crypto gains with winnings, not with shares or mutual funds.
How to cite the new sections
Because the new Act puts rates in tables, the precise way to refer to them is by section and serial number: for example, "section 194(1) read with Table Sl. No. 4" for the 30% tax, or "section 393(1), Table Sl. No. 8(vi)" for crypto TDS. For years up to 2025-26, keep using 115BBH and 194S. If a notice or a form quotes a number you do not recognise, type it into the finder above.
Old circulars did not lapse with the old Act: section 536(2)(j) keeps them in force where consistent, so CBDT Circular 13/2022 on crypto TDS now counts as issued under section 400(2). Read its six answers in our Circular 13/2022 guide.
This guide is general information, not tax advice. Section numbers are taken from the Gazette text of the Income-tax Act, 2025 and cross-checked with ICAI's tabular mapping; for your own case, consult a chartered accountant.
FAQ
What is section 115BBH called in the new Income-tax Act 2025?
The 30% tax on income from transferring a virtual digital asset is now in section 194(1) of the Income-tax Act, 2025, Table Sl. No. 4. The bar on deductions other than cost and on setting off or carrying forward losses is in column E of the same row.
What is the new section for 194S TDS on crypto?
Section 393(1) of the Income-tax Act, 2025, Table Sl. No. 8(vi): 1% on any sum paid for the transfer of a virtual digital asset. The ₹50,000 and ₹10,000 thresholds are in section 393(4), Table Sl. No. 12.
Did the crypto tax rate change under the new Income-tax Act?
No. Gains are still taxed at 30% plus 4% cess, losses still cannot be set off, and TDS is still 1%. Only the section numbers changed.
Which section defines virtual digital asset in the Income-tax Act 2025?
Section 2(111). It covers crypto-style tokens, non-fungible tokens, other notified digital assets and, in clause (d), any crypto-asset on a cryptographically secured ledger. In the 1961 Act the definition was section 2(47A).
Do I use 115BBH or section 194 for my 2025-26 crypto sales?
Section 115BBH of the 1961 Act. Sales up to 31 March 2026 are taxed under the old Act; the new sections apply to sales from 1 April 2026 (tax year 2026-27).
Sources
- Income-tax Act, 2025 (Act No. 30 of 2025), Gazette of India, 21 August 2025
- Income Tax Department: Section 115BBH (Income-tax Act, 1961)
- Income Tax Department: Section 194S (Income-tax Act, 1961)
- Income Tax Department: Taxation of virtual digital assets
- Income Tax Department: Income-tax Act vis-à-vis Bill utility
- ICAI: Income-tax Act, 2025 with tabular mapping (copy hosted by CAalley)
- Income-tax Act, 2025, section 393 (Income Tax Department)
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Updates to this page
Last updated . We log every material change. Spot an error? See our corrections policy.
- Guide published: every crypto tax section of the Income-tax Act, 1961 mapped to the Income-tax Act, 2025 (115BBH, 194S, 2(47A), 56(2)(x), 206AA, 285BAA and more), each checked in the Gazette text with page numbers, plus an old-to-new section finder.