Archive · 28 Jun 2025
India's Crypto Tax Rules: Reporting in Schedule VDA
India has new rules for taxing Bitcoin and other digital currencies.
The government treats them as assets, and you pay 30% tax on any profits.
You also have to pay a 1% tax on transactions, and even more when you file taxes.
You'll report all your crypto activity in a new section on your tax form and keep good records of all your trades to show the taxman.
It's important to understand these rules and file your taxes correctly to stay on the right side of the law.
Indian government classifies crypto as Virtual Digital Assets (VDAs) for tax purposes.
Profits from VDA sales are taxed at a flat 30% rate, with no deductions except for acquisition costs.
A 1% Tax Deducted at Source (TDS) applies to crypto transactions exceeding Rs 10,000, plus a 4% cess.
For FY2025-26, report crypto profits in the new Schedule VDA section of the ITR.
Investors must choose the correct ITR form, classify income, and maintain thorough records.
- Who
- Cryptocurrency investors in India.
- What
- New tax rules for cryptocurrency transactions in India.
- When
- Starting from FY2025-26.
- Where
- India.
- Why
- To comply with tax regulations and ensure accurate reporting of crypto gains.
Investors
Tax Authorities
Compliance vs. Complexity
Investors
Investors face complex tax regulations and the need for diligent record-keeping.
Tax Authorities
Compliance with regulations can lead to tax savings and ensure they avoid penalties.
- Tax Rate on VDAs
- 30%
- TDS Threshold
- Rs 10,000
- TDS Rate
- 1%
- Additional Cess
- 4%
- Reporting Section
- Schedule VDA
- ITR Forms
- ITR-2, ITR-3, ITR-4
