How to buy Bitcoin in India (2026)

By BtcMedia Research · Updated 22 Oct 2026 · Facts checked 21–22 Oct 2026

Step by step

1. 1. Pick an FIU-IND-registered exchange

   Only use a platform that is registered with the Financial Intelligence Unit (FIU-IND) as a reporting entity. The latest official list (Annexure I to Lok Sabha Unstarred Question 5805, 30 March 2026) names 54 registered VDA service providers as of 9 March 2026. Registration is an anti-money-laundering duty, not a licence or a safety guarantee.

2. 2. Sign up and complete KYC

   Under FIU-IND's AML/CFT guidelines for VDA service providers (updated 8 January 2026), you will be asked for your PAN (mandatory) plus one identity document: passport, driving licence, proof of possession of Aadhaar, or voter ID. The exchange verifies your mobile number and email by OTP or link, takes a live selfie with liveness detection, and records the location (latitude/longitude), date, time and IP address of your sign-up. It also collects occupation, income range and bank details.

3. 3. Link your bank account

   The exchange verifies that the bank account is yours, typically with a "penny-drop" (a small test credit), as the guidelines require. Deposit only from this registered account: for example, ZebPay charges ₹500 to recover funds sent from an unregistered account.

4. 4. Deposit rupees

   Most Indian exchanges accept UPI and/or IMPS/NEFT/RTGS bank transfers. Deposit fees are ₹0 at the exchanges we checked, but methods and limits differ (table below).

5. 5. Buy Bitcoin

   Choose the BTC/INR market. A market order buys at the best available price now; a limit order waits for your price. You can buy a fraction of a Bitcoin, for example ₹500 worth. A trading fee (about 0.25%–0.45% at base tier) plus 18% GST on the fee is charged.

6. 6. Decide where to keep it

   You can leave the Bitcoin on the exchange or withdraw it to a wallet you control. If you self-custody, back up your recovery phrase offline and never share it. Exchanges have been hacked: WazirX lost more than $230 million in July 2024.

7. 7. Keep records for tax

   Gains on selling are taxed at 30% plus 4% cess, with no deduction except the cost of acquisition and no loss set-off. 1% TDS is deducted when you sell (above ₹10,000 a year on exchanges). Keep your buy and sell statements for your return (Schedule VDA).

FIU-registered INR exchanges: fees

From each exchange's official fee page, checked 21 October 2026. Fees exclude 18% GST unless stated. Registration: Lok Sabha USQ 5805, Annexure I. Not a recommendation; no affiliate links.

Full details, incidents and global exchanges (Binance, KuCoin): Indian crypto exchanges compared →

What it really costs

On top of the fee, rupee prices for Bitcoin are often a few percent above the global price × USD/INR. Check the live INR premium tracker before you buy, today's Bitcoin price in INR, and work out your take-home with the profit & net-in-hand calculator. Planning to buy monthly? Backtest it with the Bitcoin SIP calculator.

Avoid these mistakes

• Using an app that is not on the FIU-IND list. FIU-IND has directed takedowns of 53 platforms' apps/URLs (Annexure II to the same Lok Sabha answer).
• Sharing OTPs or your recovery phrase, or "guaranteed return" schemes on Telegram or WhatsApp. No genuine exchange asks for these.
• Depositing from someone else's bank account or via unknown P2P counterparties.
• Forgetting tax: losses cannot be set off, and every sale is reported in Schedule VDA.

FAQ

Sources

• Lok Sabha Unstarred Question 5805 (30 March 2026), Annexures I and II: FIU-IND registered VDA service providers
• FIU-IND: AML & CFT Guidelines for Reporting Entities Providing Services Related to VDAs (updated 8 January 2026) · PDF copy (chapter 4, client due diligence)
• The Hindu: Selfie, 'penny-drop' mandated as KYC for crypto customers in India
• Income-tax Act, 2025, s.393 (1% TDS) · s.194 (30% on VDA income)
• Exchange fee pages linked in the table above.

Not financial advice. Crypto is volatile and you can lose all of your money. Fees and rules change; confirm on the exchange's site before you trade.

More: Is crypto legal in India? · Schedule VDA filing guide · 1% TDS explained · all guides