Crypto Tax India: What You Need to Know About Reporting Crypto in India

When you buy, sell, or trade cryptocurrency, a digital asset recorded on a blockchain that can be exchanged for goods, services, or other currencies. Also known as digital currency, it is treated as property by the Indian government for tax purposes. In India, every crypto transaction—whether it’s a trade, airdrop, or staking reward—can trigger a tax event. The rules aren’t complicated, but they’re strict. If you didn’t report your crypto gains in 2023 or 2024, you’re at risk. The Income Tax Department now uses blockchain analytics tools to trace wallet activity, and exchanges like WazirX and CoinDCX share user data with tax authorities.

There are two main types of crypto taxes in India: income tax, a tax on earnings from crypto activities like staking, mining, or receiving payments, and capital gains tax, a tax on profits made when you sell or trade crypto for more than you paid. The government doesn’t care if you held Bitcoin for a day or a year—any profit is taxed at 30%, with no deductions or losses allowed to offset gains. Even if you swap one coin for another, like trading ETH for SOL, that’s a taxable sale. Airdrops? Taxable as income when you receive them. NFTs? Same rules apply. And if you sent crypto to a friend as a gift? That’s still a taxable event for you, the sender.

Many people think they can avoid taxes by using offshore exchanges or non-KYC platforms, but that’s a dangerous myth. India’s tax laws apply to residents regardless of where the transaction happens. If you’re an Indian citizen or resident, and you hold crypto, you owe taxes. The 1% TDS (Tax Deducted at Source) on crypto trades since July 2022 means even small trades leave a paper trail. You can’t just ignore it. The government isn’t waiting for you to come forward—they’re already auditing wallets.

What you need to do is simple: track every transaction. Use a free crypto tax tool to import your wallet history and auto-calculate gains. Save your transaction IDs, timestamps, and fiat values. If you earned crypto as income—say, from a job or freelance work—report it under ‘Income from Other Sources.’ If you sold for profit, report it under ‘Capital Gains.’ Don’t wait until April. Start now. The penalty for underreporting is 100% to 300% of the tax due, plus interest. This isn’t about being perfect—it’s about being honest and organized.

Below, you’ll find real reviews and breakdowns of platforms, airdrops, and exchanges that Indian crypto users actually deal with. Some are scams. Some are outdated. Others are still active. We’ve sorted through the noise so you don’t have to waste time on fake airdrops, ghost exchanges, or risky tokens that could trigger a tax headache. What you’ll see here isn’t theory—it’s what’s happening right now in India’s crypto space, and how to handle it without getting flagged.