India Crypto Taxation: Rules, Risks, and What You Must Know in 2025
When you trade or hold cryptocurrency in India, you're not just dealing with market swings—you're navigating the India crypto taxation, the set of rules enforced by the Indian government to track and tax digital asset transactions. Also known as crypto tax India, this system treats crypto like property, not currency, and every trade, swap, or sale triggers a taxable event. The FIU-IND, India's Financial Intelligence Unit that monitors suspicious crypto flows and enforces reporting has been actively flagging wallets linked to unreported gains, and banks are freezing accounts tied to unexplained crypto deposits.
If you're running a business that accepts crypto, you can't legally use it as payment, but you can still buy, sell, or trade it—just don't forget to report every transaction. The crypto legality India, the gray zone where holding crypto is allowed but using it for payments isn't means your wallet might be safe, but your bank account isn't. The 30% tax on gains is non-negotiable, and there's no deduction for losses. Even airdrops and staking rewards count as income. No exceptions. No loopholes. The government doesn't care if you didn't cash out—you still owe tax on the value when you received it.
What happens if you ignore this? Your bank could freeze your account. The tax department can demand years of transaction history. You could face fines up to 300% of the unpaid tax. And if you're flagged by FIU-IND, you might get visited by enforcement officers. This isn't theoretical—it's already happening to traders, miners, and even small shop owners who accepted crypto as payment.
Below you'll find real cases, updated rules, and breakdowns of what you actually owe. No fluff. No guesses. Just what the law says, how it's enforced, and how to protect yourself before it's too late.
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India's 1% TDS on crypto transactions takes 1% from every trade, sale, or spend - regardless of profit. Learn how it works, who it affects, and what to do in 2025.
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