Crypto loss set-off calculator (India)
By BtcMedia Research · Updated · Tax year 2026-27
In India each profitable crypto (virtual digital asset) transfer is taxed on its own at 30% plus 4% cess, and a loss on another coin does not reduce it. The loss cannot be set off against any other income and cannot be carried forward. Example: ₹50,000 profit on one trade and ₹40,000 loss on another is a ₹10,000 net profit, yet the tax is ₹15,600. Enter your own trades below and see what the same trades would cost in tax as listed shares.
Your crypto trades (sold this tax year)
Crypto (VDA)
- Total profit on winning trades
- ₹50,000
- Total loss on losing trades
- −₹40,000
- Your real net profit/loss
- ₹10,000
- Tax on crypto (30% + 4% cess)
- ₹15,600
- Tax if the loss could be set off
- ₹3,120
- Extra tax because the loss is ignored
- ₹12,480
- Real tax rate on your net profit
- 156%
- Left after tax (crypto)
- −₹5,600
- Loss crypto lets you carry forward
- ₹0
If these were listed shares
- Tax on shares
- ₹2,080
- Left after tax (shares)
- ₹7,920
- Loss you could carry forward 8 years
- ₹0
- 1% TDS (on sale value, credited against tax)
- ₹2,100
Assumes a resident individual with total income under ₹50 lakh (no surcharge); the shares comparison uses listed shares or equity funds with STT paid and no other capital gains or brought-forward losses this year. Fees are left out.
Worked examples: same trades, two tax rules
| Case | Net | Crypto tax | Shares tax (≤12 months) | Extra from ignored loss |
|---|---|---|---|---|
| One winner, one loser₹1,00,000 → ₹1,50,000 · ₹1,00,000 → ₹60,000 | ₹10,000 | ₹15,600 | ₹2,080 | ₹12,480 |
| Profit and loss cancel out₹2,00,000 → ₹3,00,000 · ₹2,00,000 → ₹1,00,000 | ₹0 | ₹31,200 | ₹0 | ₹31,200 |
| Three trades, small net profit₹50,000 → ₹90,000 · ₹80,000 → ₹30,000 · ₹70,000 → ₹85,000 | ₹5,000 | ₹17,160 | ₹1,040 | ₹15,600 |
| Only a loss₹1,50,000 → ₹1,00,000 | −₹50,000 | ₹0 | ₹0 (+₹50,000 carried) | ₹0 |
Example trade values are illustrative; the tax is computed with the actual rules.
The rules at a glance
| Rule | Crypto (VDA) | Listed shares |
|---|---|---|
| Loss on one asset against gain on another | No | Yes (against gains of the same kind) |
| Loss against salary or other income | No | No |
| Carry the loss forward | No | Yes, 8 years (if you file on time) |
| Tax rate | 30% + 4% cess, any holding period | ≤12 months 20%; longer 12.5% above ₹1.25 lakh |
| Deductions other than cost (fees etc.) | No | Transfer expenses allowed (not STT) |
What it means: selling a losing coin saves no tax, so tax-loss harvesting does not work for crypto in India. Keep a per-trade record of cost and sale value and report every transfer in Schedule VDA. Schedule VDA guide →
FAQ
Can crypto losses be set off against gains in India?
No. Under section 194 (Table Sl. No. 4) of the Income-tax Act, 2025, which replaced section 115BBH of the 1961 Act from 1 April 2026, a loss on one virtual digital asset cannot be set off against the gain on another VDA or any other income, and cannot be carried forward. So ₹50,000 profit and ₹40,000 loss still means ₹15,600 tax.
What if my crypto profits and losses cancel out?
You still pay tax on the profitable trades. ₹1,00,000 profit and ₹1,00,000 loss nets to zero, but the crypto tax is ₹31,200. The same trades in listed shares would owe nothing.
I only made a loss. What should I do?
There is no tax, but the ₹50,000 loss is gone for good. Still report the trade in Schedule VDA of your ITR: 1% TDS was deducted on the sale and you only get that credit or refund through the return.
Do I get the 1% TDS back?
Yes, as a credit. It is set against your total tax for the year, and any excess is refunded after your return is processed.
Sources: Income-tax Act, 2025 s.194 (Indian Kanoon) · Income Tax Department: Section 115BBH · Income-tax Act, 2025 as amended by Finance Act 2026 (PDF). Rules checked 24 October 2026.
Not tax advice. An educational estimate. Ask a chartered accountant about your own case.
Related: Portfolio tracker (INR) · Crypto tax calculator · Profit & net-in-hand calculator · Tax on ₹X profit · 1% TDS guide · हिंदी में
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- Tool launched: enter up to 6 crypto trades and see the 30% VDA tax when losses cannot be set off (Income-tax Act 2025 s.194 Table Sl. No. 4), the extra tax that causes, and the same trades taxed as listed shares (20% / 12.5% above ₹1.25 lakh, 8-year carry-forward).