Test your crypto tax knowledge

9 questions on how India taxes crypto. Every answer cites the official source. Takes 2 minutes.

1. 1. What is the tax rate on profit from selling crypto in India?

   Your income-tax slab rateA flat 30% (plus cess)15% if held under a year, 10% after1%

   Income from transferring a virtual digital asset is taxed at a flat 30%, plus surcharge if applicable and 4% cess, whatever your slab.

   Source: Section 115BBH · Learn more

2. 2. You lost ₹40,000 on ETH and made ₹1,00,000 on BTC. What is your taxable crypto income?

   ₹60,000₹1,00,000₹1,40,000Nil

   A loss on one VDA cannot be set off against a gain on another (or any income), and cannot be carried forward. Tax is on the ₹1,00,000 gain.

   Source: Section 115BBH · Learn more

3. 3. Does holding Bitcoin for more than 3 years lower the tax rate?

   Yes, to 20%Yes, to 12.5%No, the holding period does not matterYes, it becomes tax-free

   There is no long-term rate for VDAs. The 30% rate applies however long you held the asset.

   Source: Section 115BBH · Learn more

4. 4. Can you deduct exchange trading fees from your crypto profit?

   Yes, all feesOnly GST on feesNo, only the cost of acquisition is deductibleYes, up to ₹10,000

   No deduction for any expenditure other than the cost of acquisition is allowed in computing VDA income.

   Source: Section 115BBH · Learn more

5. 5. The 1% TDS on crypto is calculated on…

   Your profitThe sale value (consideration)Your total portfolioThe fees you pay

   TDS under section 194S is 1% of the consideration paid for the transfer, so it is cut even when you sell at a loss.

   Source: Section 194S · Learn more

6. 6. Is the 1% TDS an extra tax on top of the 30%?

   Yes, alwaysNo, it is credited against your final taxOnly for tradersOnly on foreign exchanges

   TDS is advance tax collected at source. It appears in Form 26AS/AIS and is credited against your liability; any excess is refunded after you file.

   Source: Section 194S · Learn more

7. 7. You swap SOL for USDT on an exchange. Is that taxable?

   No, nothing was sold for rupeesYes, a swap is a transfer of a VDAOnly if over ₹1 lakhOnly USDT is taxed

   Exchanging one VDA for another is a transfer. Value it in INR at the time of the swap and report it in Schedule VDA.

   Source: Section 115BBH · Learn more

8. 8. Which ITR form do you use to report crypto gains as an investor?

   ITR-1ITR-4ITR-2 (Schedule VDA)No ITR needed

   ITR-1 and ITR-4 cannot carry VDA income. Investors use ITR-2 (ITR-3 if crypto is business income), with every transfer listed in Schedule VDA.

   Source: CBDT notification 46/2026 (ITR-2, Schedule VDA) · Learn more

9. 9. From 1 April 2026, which law contains these crypto tax rules?

   They were abolishedThe Income-tax Act, 2025The PMLAA new Crypto Act

   The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. The 30% rule moved to section 194 and TDS to section 393; the substance is unchanged.

   Source: PIB: Income-tax Act, 2025 from 1 April 2026 · Learn more

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General information, not tax advice.