# Crypto Tax Calculator

> Income from transferring crypto and other virtual digital assets (VDAs) is taxed at a flat 30% plus cess under Section 115BBH, whatever your slab and however long you held it. Only the cost of acquisition can be deducted, losses can't be set off against any income or carried forward, and 1% TDS is deducted on transfers above the threshold.

Interactive calculator: https://www.industax.com/calculators/crypto-tax

- **Tax on VDA gains:** 30% + 4% cess
- **TDS on transfer:** 1% (Section 194S)
- **Loss set-off:** Not allowed

## Crypto tax rules in India

| Rule | Detail |
| --- | --- |
| Tax rate | 30% flat + 4% cess (surcharge if applicable) |
| Deductions | Only cost of acquisition — no fees, mining or other expenses |
| Losses | Can't be set off against any income, even other VDA gains, or carried forward |
| TDS | 1% under Section 194S above ₹50,000 a year (₹10,000 for others) |
| Gifts | VDA received as a gift is taxable if over ₹50,000 (non-relatives) |
| Reporting | Schedule VDA in ITR-2 or ITR-3 |

## What counts as a transfer

- Selling crypto for rupees
- Swapping one crypto for another
- Using crypto to pay for goods or services
- Each trade is computed separately — gains and losses aren't netted

## Common mistakes

Netting losses against gains is the most common error and leads to a demand. The second is ignoring foreign exchanges — TDS isn't deducted there, but the income is still taxable and the holdings may need reporting as foreign assets.

## Worked example: two trades in a year

1. Trade A: bought Bitcoin for ₹2,00,000, sold for ₹3,00,000 — gain ₹1,00,000.
2. Trade B: bought Ethereum for ₹1,50,000, sold for ₹1,00,000 — loss ₹50,000.
3. The loss on Trade B can't be set off, so taxable VDA income is ₹1,00,000.
4. Tax at 30% = ₹30,000, plus 4% cess = ₹1,200.

**Result:** Tax ≈ ₹31,200, even though the net profit was only ₹50,000.

## FAQs

### Is crypto taxed as business income if I trade frequently?

VDA income is taxed at 30% under Section 115BBH regardless of whether it is treated as capital gains or business income, and no deduction other than cost is allowed. It is reported in Schedule VDA, and frequent traders file ITR-3.

### Can I claim the TDS deducted by the exchange?

Yes. The 1% TDS appears in your Form 26AS/AIS and is credited against your total tax liability when you file.

### Are NFTs taxed the same way?

Yes. NFTs are virtual digital assets, so the 30% rate, the no-set-off rule and TDS apply to them too.

## Official sources

- Income Tax Department: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/calculators/crypto-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.