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Crypto Tax Calculator

30% tax + 1% TDS on crypto gains (India)

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026 · Applicable to FY 2026-27 (AY 2027-28)

₹

What you paid to acquire the crypto

₹

What you received (or would receive) on selling

India taxes crypto (VDA) gains at a flat 30% + 4% cess under Section 115BBH. Only the cost of acquisition is deductible — no fees, no indexation — and losses can't be set off or carried forward.

Total tax on your crypto gain

₹15,600

Gain taxed at 30% + 4% cess

₹50,000

You keep after tax

₹34,400

1% TDS deducted at sale

₹1,500

The breakdown

Sell value − buy value₹50,000
Taxable gain₹50,000
Tax @ 30%₹15,000
Health & education cess @ 4%₹600
Total tax (effective 31.2%)₹15,600
1% TDS at sale (adjustable)₹1,500
Net profit you keep₹34,400

The 1% TDS isn't an extra tax — it's deducted at sale and adjusted against this liability when you file. Surcharge (for very high total incomes) isn't included here.

This works out the tax on your crypto (VDA) gains in India under Section 115BBH. Enter what you paid (cost of acquisition) and what you sold for, and it shows the flat 30% tax, the 4% cess, the 1% TDS deducted at sale, and the profit you actually keep.

India's crypto rules are unusually strict. The rate is a flat 30% no matter how long you held — there's no lower long-term rate. The only deduction is the cost of acquisition: not fees, not other expenses, and no indexation. And crucially, losses give you nothing — they can't offset other crypto gains, can't offset salary or capital gains, and can't be carried forward. So two trades, one ₹50,000 gain and one ₹50,000 loss, still leave you taxed on the ₹50,000 gain.

The separate 1% TDS under Section 194S is collected by the exchange on each sale above the threshold. It isn't extra tax — it's adjusted against your 30% liability when you file your return — but it ties up cash through the year. Planning your overall tax? See our income tax calculator for the rest of your income.

Computed from Section 115BBH of the Income Tax Act (flat 30% tax on income from transfer of Virtual Digital Assets, plus 4% health & education cess, with only cost of acquisition deductible and no set-off or carry-forward of losses) and Section 194S (1% TDS on the transfer value), as notified by the Income Tax Department, Government of India. Surcharge on very high incomes and the TDS thresholds for specified persons are not modelled. Not tax advice.

  • By law, losses can't be set off against other income or carried forward.
  • Doesn't cover classification edge cases or foreign-account reporting.
How much tax do I pay on crypto in India?
Gains from crypto (Virtual Digital Assets) are taxed at a flat 30% under Section 115BBH (section 194 of the new Income-tax Act, 2025), plus a 4% health & education cess — an effective 31.2%. The rate is the same regardless of how long you held the asset; there's no short-term/long-term distinction for crypto.
What is the 1% TDS on crypto?
Section 194S (section 393 of the new Income-tax Act, 2025) requires a 1% TDS (Tax Deducted at Source) on the sale value of crypto when it crosses a small threshold (₹10,000, or ₹50,000 for specified persons). It's deducted by the exchange at the time of sale. It's not an extra tax — it's adjusted against your final 30% liability when you file — but it does lock up cash through the year.
Can I set off crypto losses against my gains?
No. This is the harshest part of the rule: a loss on one crypto cannot be set off against a gain on another crypto, cannot be set off against any other income (like salary or capital gains), and cannot be carried forward to future years. Each gain is taxed on its own at 30%, while losses simply give no relief.
Can I deduct exchange fees or other expenses?
No. The only deduction allowed against the sale value is the cost of acquisition (what you paid for the crypto). Trading fees, internet, mining costs or any other expense cannot be deducted, and indexation is not available.
How much tax on ₹1 lakh crypto profit?
On a ₹1,00,000 crypto gain, the tax is 30% = ₹30,000, plus 4% cess = ₹1,200, for a total of ₹31,200. You'd keep ₹68,800. Separately, 1% TDS is deducted on the sale value at the time of the trade and adjusted against this. Enter your own figures above for the exact number.
Do I pay tax if I made a loss on crypto?
There's no tax on a trade you sold at a loss — but you also get no benefit from it, since crypto losses can't offset other gains or income and can't be carried forward. The 1% TDS is still deducted at sale and is adjustable against your total tax for the year.

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