Crypto Taxation in India 2025: Rules, Rates & Smart Planning

With the rise of cryptocurrencies, India has implemented strict crypto tax regulations.
This guide explains taxation of crypto in FY 2025-26, covering:

• Income classification (capital gains vs speculative)

• Tax rates & TDS

• Filing requirements

• Planning strategies to reduce tax

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⭐ Who Should Read This Guide?

• Crypto investors & traders

• NFT collectors & sellers

• Salaried individuals investing in crypto

• Businesses accepting crypto payments

• Accountants & financial planners

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: Crypto Tax Overview in India (2025-26 Rules)

1. Flat 30% Tax on Gains

   • All gains from crypto and NFTs taxed at 30% (Section 115BBH)

   • No deductions except cost of acquisition

   • Losses cannot be set off against other income

2. TDS on Crypto Transactions

   • 1% TDS applicable on transfers above ₹50,000 per FY

   • Applies to buyers making payments to sellers

3. No Set-Off Allowed

   • Losses cannot reduce other income

   • Gains and losses tracked separately

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: Taxable Crypto Events

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: Reporting Crypto Income in ITR (FY 2025–26)

• Use ITR-2 (for individuals)

• Report under “Income from Other Sources” or “Capital Gains”

• Include cost of acquisition, sale value, and date of transaction

• TDS claimed in Form 26AS

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: Crypto Tax Planning Strategies

1. Track Cost of Acquisition Accurately

   • Keep all exchange statements

   • Include purchase price + transaction fees

2. Split Trades Across Financial Years

   • Helps manage cash flow and TDS applicability

3. Use Separate Wallets / Exchanges

   • Easier reporting

   • Easier audit trail

4. Consider Long-Term Holding (for NFTs)

   • Gains may be considered collectible income

5. Use Professional Assistance

   • WonderTax offers crypto income reporting & filing support

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: Practical Example (Updated 2025-26)

Example:

• Crypto bought: 1 BTC @ ₹25,00,000 in Jan 2025

• Sold: 1 BTC @ ₹40,00,000 in Oct 2025

Gain: ₹15,00,000
Tax @ 30%: ₹4,50,000
TDS: 1% on ₹40,00,000 → ₹40,000 (adjusted against final tax)

Net Tax Payable: ₹4,10,000

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: Common Mistakes to Avoid

❌ Not reporting crypto transactions
❌ Ignoring TDS implications
❌ Mixing personal & business wallets
❌ Not tracking acquisition cost
❌ Treating crypto as stock (short-term capital gains rates don’t apply)

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: WonderTax Crypto Tax Services

We provide:

• Crypto portfolio reconciliation

• TDS calculation & compliance

• ITR filing for crypto income

• Documentation & audit support

• Advisory on NFT and staking income

👉 Explore services: https://wondertax.in/contact-us/services

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: FAQs — Crypto Taxation 2025-26

Q1. Are crypto losses allowed to offset other income?

❌ No, losses can’t be set off against salary or capital gains.

Q2. What is the TDS rate on crypto transactions?

✔ 1% above ₹50,000 per financial year.

Q3. How to report NFT sales?

✔ Taxed at 30% under Section 115BBH. Include in ITR-2.

Q4. Are gains from crypto mining taxed differently?

✔ Yes, considered business income + 30% tax.

Q5. Can I claim exchange fees as deduction?

✔ Yes, included in the cost of acquisition.

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: Final CTA

Ensure complete compliance and smart tax planning for crypto in FY 2025–26.
👉 Let WonderTax handle your crypto income, TDS & ITR filing.
https://wondertax.in/contact-us