The short answer: in India, a crypto gain is taxed at a flat 30% plus 4% cess (31.2%) from the first rupee, no matter how long you held. A gain on listed shares held for more than 12 months is taxed at 12.5% only on the part above ₹1.25 lakh a year. On a ₹2 lakh profit, that is ₹62,400 for crypto against ₹9,750 for shares.
The gap is back in the news this week. The government is reportedly weighing a restructuring of the 12.5% equity long-term capital gains (LTCG) rate before the 2027-28 Budget, with a decision possible “in the coming weeks”, Moneycontrol reported on 26 October, as foreign investors pulled ₹3.08 lakh crore out of Indian equities in 2026 so far (Financial Express, citing CDSL data). None of the reported options touch crypto.
The rules side by side
Under the Income-tax Act, 2025, in force since 1 April 2026, the rates carried over from the old law. The government’s own FAQ on section 210 confirms short-term gains on STT-paid listed equity (section 196) at 20%, and long-term gains (section 198) taxed at 12.5% above ₹1,25,000. Crypto, which the law calls a virtual digital asset (VDA), keeps its flat 30% regime (section 115BBH under the 1961 Act).
| Rule | Crypto (VDA) | Listed shares, held ≤12 months | Listed shares, held >12 months |
|---|---|---|---|
| Tax rate | 30% | 20% | 12.5% |
| Tax-free amount | None | None | ₹1.25 lakh a year |
| Deductions | Cost of purchase only | Cost and transfer expenses | Cost and transfer expenses |
| Losses | No set-off, no carry-forward | Set off against gains, carry forward | Set off against long-term gains, carry forward |
| At sale | 1% TDS on sale value | STT | STT |
BtcMedia’s tax table: same gain, three bills
Our calculation, adding 4% health and education cess and ignoring surcharge (which applies only above ₹50 lakh of income):
| Gain | Crypto (31.2%) | Shares, short-term (20.8%) | Shares, long-term |
|---|---|---|---|
| ₹1,00,000 | ₹31,200 | ₹20,800 | ₹0 |
| ₹2,00,000 | ₹62,400 | ₹41,600 | ₹9,750 |
| ₹5,00,000 | ₹1,56,000 | ₹1,04,000 | ₹48,750 |
| ₹10,00,000 | ₹3,12,000 | ₹2,08,000 | ₹1,13,750 |
The ₹1.25 lakh allowance is why the gap is widest on smaller gains. At ₹2 lakh, crypto pays 6.4 times the long-term share bill; at ₹10 lakh, about 2.7 times. Holding longer changes nothing for crypto: our holding-period study shows patience helped bitcoin’s rupee returns, but the tax rate on a 5-year hold is the same 31.2% as on a 5-day trade.
Losses widen the gap further
Say you made ₹2 lakh on one coin and lost ₹50,000 on another. With crypto, the loss is ignored and you still pay ₹62,400; we walked through this in our loss set-off explainer. With short-term share trades, you would pay 20.8% on the net ₹1.5 lakh, or ₹31,200, and an unused capital loss can be carried forward to later years.
TDS adds a cash-flow cost. On selling ₹5 lakh of crypto, ₹5,000 is deducted at source. It is credited against your final tax, but if you owe less, the money comes back only after you file, as our TDS refund guide explains.
What it means for Indian investors
- Compare after-tax returns, not headline returns. A crypto gain has to be about 15% larger than a short-term share gain, and at least 26% larger than a long-term one, to leave the same money in hand (68.8% kept vs 79.2% and 87% or more).
- Any LTCG cut, if it comes, would widen the gap. Even if equity LTCG were scrapped entirely, a crypto gain would still pay 31.2%.
- Run your own numbers with the crypto tax calculator, which now shows a tax-vs-listed-shares verdict, and check deductions with the TDS calculator. Live rates are on the bitcoin INR price page.
BtcMedia verdict: India taxes crypto like a lottery win and shares like an investment. Until that changes, crypto works best as a small, long-term slice of a portfolio, not a trading account.
How we calculated this: gains multiplied by 30%, 20% or 12.5% (long-term only on the amount above ₹1,25,000), then by 1.04 for cess; no surcharge, no other income assumed. Rates per the Income-tax Act, 2025 and the government FAQ linked above, checked 29 October 2026, 4:50 PM IST.
FAQ
Is crypto taxed more than shares in India?
Yes. Crypto gains pay a flat 31.2% including cess. Listed shares pay 20.8% if held 12 months or less, and 13% (12.5% plus cess) only on gains above ₹1.25 lakh if held longer.
Does holding crypto for more than a year reduce tax in India?
No. There is no long-term rate for crypto. A gain on a coin held five years pays the same 30% plus cess as one held five days.
Will the LTCG tax cut apply to crypto?
Nothing reported so far suggests it. The reported review covers equity LTCG, prompted by foreign portfolio outflows from Indian stocks.
This article is for information only and is not financial or tax advice. Check your own case with a chartered accountant.