India taxes gains on virtual digital assets at a flat 30%, disallows almost every deduction, refuses loss set-off, and adds a 1% TDS at source on most transfers.
| Point | Position |
|---|---|
| Headline rate | 30% on income from the transfer of a virtual digital asset (VDA), plus applicable surcharge and 4% health and education cess — section 115BBH, Income-tax Act 1961, in force from assessment year 2023-24. |
| Deductions | Only the cost of acquisition. No deduction for infrastructure, trading fees, interest or any other expenditure. |
| Losses | A loss on one VDA cannot be set off against gains on another VDA, against any other head of income, or carried forward. |
| Tax at source | 1% TDS on the consideration for a transfer under section 194S, subject to the specified thresholds; deducted by the exchange or the buyer depending on the arrangement. |
| Reporting | Transactions are reported in Schedule VDA of the income tax return, item by item, with dates of acquisition and transfer. |
| Gifts | A VDA received as a gift is taxable in the recipient's hands under the ordinary gift provisions. |
The two rules that surprise people most are the loss treatment and the scope of "transfer". A profitable year and a loss-making year do not net out, and crypto-to-crypto swaps are transfers — every swap is a taxable event even though no rupee was received.
DexLadder's tax ledger models India and computes the position from your own ledger entirely on your device. There is no upload, no account and no third party receiving your transaction history — which matters more here than anywhere else on the site, because this is the data set that reveals the most about you.
Yes. A transfer of a VDA includes exchanging one VDA for another, so the gain is computed in rupees at the time of the swap even though no fiat moved.
No. Section 115BBH does not permit set-off of a VDA loss against any income, including gains on other VDAs, and such losses cannot be carried forward.
No. TDS under section 194S is a collection mechanism, credited against your final liability — the 30% under section 115BBH still applies.
Open the tax ledger — no account, nothing to install