Crypto Tax India 2026 | Official Guide

Taxation of Crypto Trading in India

Current Law & Post-Budget 2026 Position

The Indian crypto landscape has shifted from a "wait-and-see" approach to a strict compliance-first era. Following the Union Budget 2026, while tax rates remain high, the focus is now squarely on enforcement and reporting.

1. The "30% + 1%" Framework

Despite industry hopes for relief, Budget 2026 retains the high-tax structure for Virtual Digital Assets (VDAs) under Section 115BBH.
  • 30% Flat Tax: All crypto gains are taxed at 30% (plus 4% Cess). No slab benefits apply.
  • 1% TDS: Deducted under Section 194S on every trade exceeding ₹10,000 (or ₹50,000 for specified persons).
CRITICAL: No Loss Set-Off. You cannot use losses from one coin to offset profits from another. Every profitable trade is taxed independently.

2. Post-Budget 2026: The Penalty Era

The 2026 Budget introduced a new penalty framework under Section 509 to ensure every transaction is reported.

₹200 / Day Penalty for non-filing of crypto transaction statements.
₹50,000 Flat fine for inaccurate reporting or misleading data.

Furthermore, from January 1, 2026, "Financial Assets" now explicitly include CBDCs (E-Rupee) and electronic money, subjecting them to the same scrutiny as Bitcoin.

3. Filing Your Returns (ITR 2026-27)

Task Compliance Detail
Schedule VDA Item-wise listing of acquisition dates, transfer dates, and costs for every single trade.
Deductions Only the Cost of Acquisition is deductible. Fees, gas, and commissions are not allowed.
Reconciliation Verify your 1% TDS against Form 26AS and the updated AIS (Annual Information Statement).