Archive · 6 Sep 2025
Crypto Tax Filing: Investor Warns of Compliance Risks
If you trade or sell cryptocurrencies, you must pay taxes in India.
The government taxes profits at a flat 30%.
Remember, you can't subtract losses from your gains, and you can't carry them forward.
You need to report all your crypto transactions on your tax return.
You'll also pay a small tax on sales.
Make sure to classify your income correctly—whether as capital gains or business income—depending on how often you trade.
Always get advice from a tax advisor to avoid mistakes.
Profits from crypto trading are taxed at a flat 30% plus 4% cess in India.
Losses from one crypto asset cannot offset gains from another or other income.
Crypto losses cannot be carried forward to future years.
A 1% TDS applies to crypto sales if annual transactions exceed specific limits.
Taxpayers must correctly classify income as either capital gains or business income.
- Who
- Cryptocurrency investors and traders in India
- What
- Tax filing guidelines for virtual digital assets (VDAs), including tax rates, loss treatment, and reporting requirements
- When
- Ongoing, with specific rules in place since 2022
- Where
- India
- Why
- To ensure compliance with the Income Tax Act and avoid penalties.
- Tax Rate on Gains
- Flat 30% plus 4% cess
- Loss Set-Off
- Not allowed
- Loss Carry Forward
- Not permitted
- TDS on Sale
- 1% if annual transactions exceed ₹50,000
- Deductions Allowed
- Cost of acquisition only
- Income Classification
- Capital Gains or Business Income (depending on trading frequency)
- Reporting Requirement
- Mandatory under Schedule VDA in ITR from FY 2025-26
Sources
ITR Filing Deadline: Who Needs To File ITR By September 15? A Quick Guide For Non-Audit Taxpayers
Govt extended ITR AY 2025-26 deadline, but only 4.56 crore returns filed so far
ITR filing deadline nears: Mistakes to avoid while filing last-minute returns
ITR Deadline: 8 Mandatory Documents You Need To Keep Ready Before September 15
How to check your ITR filing status online: A step-by-step guide
Income Tax: 5 common mistakes taxpayers often make while filing ITR and how to avoid them
Earning From Social Media? Know Which ITR Form To File, Tax Regime To Choose
