Crypto Trading India: Rules, Taxes, and How to Trade Legally in 2025

When you trade crypto trading India, the practice of buying, selling, or swapping digital assets within India’s legal and tax framework. Also known as digital asset trading in India, it’s not banned—but it’s far from free-wheeling. The government treats crypto like property, not currency, and every trade triggers a tax. That’s why over 15 million Indians still trade crypto every month, even with the 1% TDS deduction slapped on every transaction.

The 1% TDS crypto India, a mandatory tax deducted at source on every crypto trade, sale, or spend isn’t optional. Whether you swap Bitcoin for Ethereum, sell Solana for INR, or buy an NFT with USDT, the exchange automatically takes 1% and sends it to the tax department. No profit? Still taxed. No paperwork? Still taxed. This rule hit in 2022 and hasn’t changed. It’s designed to track every move, not to punish traders—but it forces you to keep records. If you’re using Binance P2P, WazirX, or CoinSwitch, the platform handles the deduction. If you’re trading over Telegram or WhatsApp with cash, you’re on your own—and risking penalties.

That’s why P2P crypto India, peer-to-peer trading that bypasses traditional exchanges using local bank transfers or cash is the backbone of India’s crypto scene. People use platforms like Binance P2P, CoinSwitch, and local WhatsApp groups to buy USDT from sellers who deposit INR directly into their bank. It’s slower, riskier, and less convenient than clicking a button—but it gives you control. And when banks freeze accounts or block crypto deposits, P2P is the only way out. It’s not illegal, but it’s not protected either. You’re trusting a stranger with your money, and if they vanish, you have no recourse.

And then there’s the crypto tax India, the broader set of rules that classify crypto gains as taxable income, with rates up to 30% plus cess. Unlike stocks, you can’t offset crypto losses against other income. A 10x gain on Dogecoin? 30% gone. A loss on a meme coin? Doesn’t matter. The tax system doesn’t care if you broke even overall. You pay on every profitable trade, every time. That’s why smart traders in India track every swap, every withdrawal, every fee—using tools like Koinly or CoinTracker—not because they want to, but because the IT department can request your wallet history anytime.

There’s no official ban on crypto in India, but the rules feel like a slow squeeze. Banks won’t open accounts for crypto businesses. Exchanges can’t advertise on TV. The government hasn’t legalized crypto as money, but it’s not stopping people from using it either. So what’s left? A gray zone where millions trade daily, paying taxes they didn’t ask for, using tools they didn’t choose, all while hoping the next policy won’t shut them down.

Below, you’ll find real guides on how to handle the 1% TDS, which exchanges still work in India, how to spot scams hiding as P2P platforms, and why some tokens are safer than others—even if they’re just memes. No fluff. No hype. Just what you need to trade without getting caught off guard.