Most people who sold crypto at a profit this year plan to settle the tax when they file their return next July. The law expects it sooner. If your crypto gain pushes the year’s unpaid tax to ₹10,000 or more, India wants it paid in advance, in instalments, and the next one falls on 15 December 2026.
The short answer: yes, crypto gains are subject to advance tax in India. Miss it and you pay interest, about 1% a month, on top of the 31.2% tax itself.
Who has to pay
Under the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026, advance tax applies when the year’s tax, after subtracting tax deducted at source, is ₹10,000 or more (section 404, old section 208). The 1% TDS your exchange deducts on each crypto sale is subtracted first (section 405).
One group is exempt: a resident aged 60 or over with no business or professional income (section 403(3)). Salaried people whose salary tax is fully covered by their employer’s TDS still owe advance tax on a crypto gain, because the employer’s TDS doesn’t cover it.
The schedule (section 408) is cumulative:
| Due date | Paid by then, at least |
|---|---|
| 15 June 2026 | 15% |
| 15 September 2026 | 45% |
| 15 December 2026 | 75% |
| 15 March 2027 | 100% |
Anything paid by 31 March still counts as advance tax.
Three sales, three answers
We ran three examples at 31.2% (30% plus 4% cess, no surcharge at these amounts), assuming no other unpaid tax for the year.
| Sale value | Gain | Tax at 31.2% | 1% TDS | Left to pay | Advance tax? |
|---|---|---|---|---|---|
| ₹1,00,000 | ₹30,000 | ₹9,360 | ₹1,000 | ₹8,360 | No |
| ₹2,00,000 | ₹50,000 | ₹15,600 | ₹2,000 | ₹13,600 | Yes |
| ₹10,00,000 | ₹3,00,000 | ₹93,600 | ₹10,000 | ₹83,600 | Yes |
The line is lower than it looks. A gain of roughly ₹35,000 to ₹40,000 on a modest sale is already enough to cross ₹10,000, and the 1% TDS barely dents the bill because it is charged on the sale value, not the profit. You can check your own numbers in our crypto advance tax calculator.
What waiting costs
Two interest charges apply. Section 425 (old 234C) charges 3% on the shortfall at the June, September and December instalments, and 1% at March. Section 424 (old 234B) adds 1% a month, or part of a month, from 1 April if you paid less than 90% of the year’s tax.
Take the ₹10 lakh sale in October 2026, with ₹83,600 left to pay. If nothing is paid until the return on 31 July 2027:
- December shortfall: 75% of ₹83,600 is ₹62,700, and 3% of that is ₹1,881.
- March shortfall: 1% of ₹83,600 is ₹836.
- April to July 2027, four months at 1%: ₹3,344.
That is about ₹6,061 of interest, roughly 7% on top of the tax. For the ₹2 lakh sale, the same delay costs about ₹986.
The relief for a late-year sale
You don’t owe interest for June and September just because you sold in October. Section 425(4) says no interest is charged on a shortfall caused by capital gains if the full tax on them is paid in the remaining instalments or by 31 March. Crypto held as an investment is a capital asset, so a gain on it should fall under that relief. A guide to the 2025 Act at Open Accountants notes that whether it covers a VDA gain hasn’t been settled, so a trader taxed on crypto as business income should ask a CA.
The simplest safe route is to pay the whole tax on a gain by the next due date after you sell. For an October or November sale, that is 15 December.
How to pay
Use the e-Pay Tax service on the income tax portal, choose advance tax as the payment type for tax year 2026-27, and keep the challan. When you file, the payment shows up next to the 1% TDS, and you report crypto gains in the virtual digital asset schedule. If more TDS was deducted than you owe, it comes back as a refund, as explained in our crypto TDS refund guide.
BtcMedia verdict
For most small holders, advance tax never kicks in: the 1% TDS and the ₹10,000 line keep them out. But one decent sale, such as ₹50,000 of profit on a bitcoin position, puts you in. Paying by 15 December costs nothing extra; waiting for July costs about 7%.
FAQ
Do I pay advance tax on crypto if I’m salaried? Yes, if the crypto gain leaves ₹10,000 or more of tax unpaid after TDS. Your employer’s TDS covers only your salary.
I sold crypto at a loss. Do I owe advance tax? No tax is due on a loss, but crypto losses can’t reduce other crypto gains or other income, as our loss set-off guide shows. Advance tax is worked out on your net tax for the year.
Is the 1% TDS enough? Usually not. TDS is 1% of the sale value, while tax is 31.2% of the gain, so on most profitable sales TDS covers only a small part.
How we calculated this: 31.2% of the gain, minus 1% of the sale value, with interest under sections 424 and 425 of the Income-tax Act, 2025, assuming payment on 31 July 2027, calculated 30 October 2026, IST. This is general information, not tax or financial advice; check your own case with a chartered accountant.