What is Cryptocurrency Tax in India?

As per the provisions of the Income Tax Act, 1961, cryptocurrency is classified as “Virtual Digital Asset (VDA)”. Post-amendments introduced in the Finance Act, 2022 (applicable from AY 2023–24), gains arising from cryptocurrency trading are taxable u/s 115BBH at a flat rate of 30%, along with applicable surcharge and health and education cess

From April 1, 2026, a 1% TDS is deducted from the crypto gains u/s Section 393(1) of the Income Tax Act, 2025. For reporting VDA transactions in the ITR (Income Tax Return), the Income Tax Department provides a “Schedule VDA” available in both ITR-2 and ITR-3. 

Crypto Tax Calculation India

Under Section 115BBH of the Income Tax Act, 1961, the taxable amount (or crypto gains) is generally calculated as “Sale Consideration − Cost of Acquisition”. The resulting income is taxed at 30%, plus applicable surcharge and 4% health and education cess. V

For example, 

• Suppose a trader buys Bitcoin for ₹2,00,000 and later sells it for ₹2,80,000
• Now, the VDA income would be ₹80,000 (₹2,80,000 − ₹2,00,000). 
• Tax at 30% would be ₹24,000, and 4% cess would add ₹960, making the tax ₹24,960 before any applicable surcharge. 

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