India Crypto Taxation: What You Pay, How It Works, and What’s at Risk

When you trade cryptocurrency in India crypto taxation, a 30% tax on gains with no loss offset, no deductions, and no exemptions applies to every trade, regardless of profit or loss. Also known as crypto tax India, this rule turned the country into one of the strictest crypto tax regimes in the world—even though there’s still no clear legal status for crypto as an asset. Unlike places that tax only realized profits or offer exemptions for small trades, India treats every swap, sell, or transfer like a taxable event. That means if you trade BTC for ETH, even if neither went up in value, you still owe 30% on the value of what you traded away.

This system doesn’t just affect big investors. It hits everyday users who swap tokens on decentralized exchanges, use crypto to pay for goods, or even receive crypto as a gift. The India crypto regulation, a patchwork of tax rules without formal licensing or legal recognition for exchanges. Also known as crypto trading India, it leaves users in a gray zone: legal to trade, but punished like a high-risk business. There’s no official way to register as a crypto trader, no licensed exchanges under Indian law, and no protection if a platform shuts down or gets hacked. You’re on your own.

The cryptocurrency tax rules, require you to track every transaction, report it in your income tax return, and pay 30% plus 4% cess—no matter how small the amount. Also known as crypto tax India, this applies even if you’re just moving crypto between wallets or using it to buy a coffee. The government doesn’t care if you lost money overall—if one trade made a profit, that’s taxable. And unlike stocks, you can’t use losses to reduce your tax bill. This makes crypto feel less like an investment and more like a high-stakes gamble with a steep price tag.

What’s worse? The rules change without warning. One year, the government says crypto is fine. The next, it threatens to ban it. The COINS Act 2025, a proposed bill that could bring licensing, KYC, and stricter oversight to crypto platforms in India. Also known as India crypto regulation, it’s still not law—but it shows where the government might be heading. Until then, traders operate under a cloud of uncertainty. Exchanges like WazirX and CoinDCX still run, but they’re not licensed. You can trade, but you’re not protected. You pay tax, but you get no benefits.

Below, you’ll find real stories and breakdowns from Indian crypto users—how they track their taxes, what scams they’ve avoided, and why some are quitting altogether. You’ll see how the 30% tax hits small traders harder than big ones, how P2P trading is growing to dodge banking limits, and why even a $10 swap can trigger a tax bill. This isn’t theory. It’s what’s happening right now, on the ground, in India’s unregulated crypto market.