Crypto Tax Calculator
Calculate 30% tax on crypto gains and 1% TDS instantly.
Crypto Tax Calculator
Tax Breakdown
Crypto Tax Rules 2026
| Rule | Detail |
|---|---|
| Tax Rate | 30% flat on gains (Section 115BBH) |
| TDS Rate | 1% on sale value > ₹50,000 (Section 194S) |
| Set-off | Not allowed against any other income |
| Carry Forward | Not allowed |
| Deductions | Only cost of acquisition allowed |
Crypto Tax in India — Complete Guide (2026)
The taxation of cryptocurrency and other Virtual Digital Assets (VDAs) in India is governed by Section 115BBH of the Income Tax Act, introduced in the Finance Act 2022. This section imposes a flat 30% tax on income from the transfer of any VDA, including Bitcoin, Ethereum, NFTs, and other crypto tokens. The tax applies irrespective of the holding period — whether you hold crypto for a day or several years, the rate remains the same.
Unlike other capital gains categories, the crypto tax regime is highly restrictive. You cannot claim any deductions under Chapter VI-A (such as Sections 80C, 80D, etc.) against crypto income. The only permissible deduction is the cost of acquisition, which means the original purchase price of the cryptocurrency. Expenses like mining costs, transaction fees, or wallet charges are generally not deductible.
TDS on Cryptocurrency — Section 194S
Effective from July 1, 2022, Section 194S mandates TDS at 1% on the transfer of virtual digital assets. This TDS applies when the aggregate transaction value exceeds ₹50,000 in a financial year for specified persons, or ₹10,000 for others. The buyer or the person responsible for making the payment must deduct TDS before crediting or paying the seller. This TDS is a advance tax and can be adjusted against your final tax liability while filing your Income Tax Return (ITR).
How Crypto Tax is Calculated
The calculation is straightforward: Capital Gain = Sale Price - Purchase Price. The tax is then calculated as 30% of this gain. Additionally, 4% health and education cess is levied on the tax amount. For example, if you bought 1 Bitcoin for ₹30,00,000 and sold it for ₹45,00,000, your capital gain is ₹15,00,000. The tax at 30% would be ₹4,50,000, plus 4% cess (₹18,000), bringing your total tax to ₹4,68,000.
Important Restrictions
One of the most significant aspects of Section 115BBH is the prohibition on setting off losses. If you incur a loss on one crypto transaction, you cannot use it to offset gains from another crypto transaction or any other income source. Furthermore, you cannot carry forward crypto losses to subsequent financial years. This makes the tax treatment of crypto fundamentally different from stocks, mutual funds, or other capital assets.
Reporting Crypto Income in ITR
Crypto income must be reported in the Income Tax Return under the schedule for Virtual Digital Assets. From Assessment Year 2023-24 onwards, a separate schedule has been introduced in ITR forms specifically for reporting VDA income. Failure to report crypto income accurately can lead to penalties and prosecution under the Income Tax Act.
How to Use This Crypto Tax Calculator
- Enter Purchase Price — The price at which you bought the cryptocurrency per unit.
- Enter Sale Price — The price at which you sold or traded the cryptocurrency per unit.
- Select Transaction Type — Choose Buy, Sell, or Trade depending on your transaction.
- Enter Number of Transactions — Specify how many units or transactions you want to calculate for.
- Click Calculate — View the complete breakdown including 30% tax, 1% TDS, and cess.