India Crypto Regulation: Taxes, Rules, and What You Need to Know in 2025

When it comes to India crypto regulation, the set of laws and taxes enforced by the Indian government on cryptocurrency trading, holding, and reporting. Also known as Indian cryptocurrency laws, it’s not about banning crypto—it’s about controlling how you use it. Unlike countries that welcome crypto as innovation, India treats it like cash with extra steps. You can buy, sell, and hold Bitcoin or Ethereum, but every single trade triggers a tax, and the government watches every transaction.

The biggest change? The 1% TDS on crypto transactions, a tax automatically deducted by exchanges on every trade, sale, or spending of cryptocurrency in India. Also known as crypto TDS, it applies whether you make a profit or not. If you buy $1,000 worth of Bitcoin and sell it for $1,100, you pay 1% on the $1,100 sale. If you buy $1,000 and spend it on a coffee, you still pay 1% on that $1,000. It doesn’t matter if you lost money. The system is built to catch every movement. This isn’t a capital gains tax—it’s a transaction tax, and it hits even small trades. Many traders didn’t expect this, and now they’re scrambling to track every swap, every transfer, every purchase.

Then there’s the crypto tax India, the broader framework of income tax rules that apply to profits from crypto, including how gains are classified and reported. Also known as Indian crypto taxation, it treats crypto as a virtual asset, not currency. Profits are taxed at 30%, no deductions allowed, and losses can’t offset other income. If you trade daily, you’re essentially running a business without the benefits of business expenses. And while exchanges like WazirX or CoinSwitch don’t file your taxes for you, they do report transaction data to the tax department. The government already has your history. Ignorance isn’t an excuse anymore.

What about the future? India’s rules are still evolving, but they’re not going away. Other countries like Vietnam and South Korea have similar rules now, but India’s 1% TDS is one of the strictest in the world. There’s no official ban on crypto, but there’s no real support either. Banks still hesitate. Payment apps block crypto purchases. And while P2P trading keeps going strong—especially with USDT—every deal carries risk. The law doesn’t protect you, and the exchanges won’t help you if you get caught in a scam.

What you’ll find below are real, up-to-date guides on how these rules actually work. Not theory. Not opinion. Exactly what you need to do to stay legal, avoid fines, and understand your tax burden. Whether you’re a daily trader, a long-term holder, or just starting out, the posts here cut through the noise and show you what matters today—in India, in 2025.