- Crypto is not regulated in India and not banned. Crypto service providers must register with the Financial Intelligence Unit (FIU-IND) under the money-laundering law; 54 were registered on 9 March 2026. Registration is not a license.
- Income from transferring crypto and other virtual digital assets (VDAs) is taxed at a flat 30% plus surcharge and 4% cess, for individuals and companies alike. Only the cost is deductible, and losses cannot be set off or carried forward.
- Exchanges and other buyers deduct 1% tax at source (TDS) from the sale price above ₹10,000 or ₹50,000 a year.
- Since 1 April 2026 the new Income-tax Act, 2025 applies. The return for 2025-26 was due on 31 July 2026 for most individuals; audited taxpayers have until 21 November 2026.
- FIU-IND has ordered the blocking of dozens of unregistered offshore exchanges, most recently 15 in September 2026.
This guide covers private individuals and companies that hold, trade or accept crypto in India. It does not cover issuing tokens. This page gives the overview; each topic has its own page with the details, examples and sources. It is general information, not legal or tax advice.
Key figures
| Item | Figure | Details |
|---|---|---|
| Tax on income from VDAs (2025-26 and tax year 2026-27) | 30%, plus surcharge and 4% cess | Personal tax |
| Highest combined rate on VDA income (2026-27) | 39% (new regime), about 42.7% (old regime) | Personal tax |
| TDS on the sale price (2026-27) | 1%, above ₹50,000 or ₹10,000 a year | TDS |
| VDA losses | No set-off, no carry-forward | Losses and costs |
| Income tax return 2025-26 | 31 July 2026 (individuals without audit); 21 November 2026 (audited) | Deadline calendar |
| Corporate income tax (tax year 2026-27) | 25% or 30%, or 22% (section 200); VDA income 30% | Business tax |
| Crypto-asset statements by providers (from 1 April 2026) | Penalty ₹200 a day if late | Provider reporting |
| Providers registered with FIU-IND (9 March 2026) | 54 | Exchanges |
Legal status
The government says crypto-assets and NFTs “are unregulated in India”: there is no licensing law and no crypto regulator, and no crypto bill has been enacted (October 2026). The RBI warns about the risks but does not supervise crypto. Since March 2023 crypto service providers fall under the Prevention of Money Laundering Act and must register with FIU-IND. More on regulation.
Tax for individuals
Income from selling or swapping a VDA is taxed at 30% plus surcharge and cess, with only the cost of acquisition deductible. A loss on one coin cannot reduce a gain on another or any other income. The rule moved from section 115BBH of the 1961 Act to section 194 of the Income-tax Act, 2025 on 1 April 2026 without changing. A worked example, TDS, staking and moving to or from India are on personal tax.
Tax for companies
Companies pay the same 30% on VDA income and the normal corporate rates on other profit: 25% or 30%, or 22% under the optional regime, for tax year 2026-27. Companies must disclose crypto holdings in their accounts. We found no official GST guidance on crypto itself. More on business tax.
Reporting and filing obligations
Individuals report every crypto transfer in Schedule VDA of ITR-2 or ITR-3; for 2025-26 the return was due on 31 July 2026, and audited taxpayers have until 21 November 2026. The tax department matches exchanges’ TDS data with returns, and from 2026-27 providers also file crypto-asset statements. The full calendar, late and updated returns and penalties are on filing and deadlines.
Exchanges and KYC
Use an exchange that is registered with FIU-IND and expect identity checks and 1% TDS on every sale. FIU-IND does not publish its register, but the government gave the list of 54 registered providers to Parliament in March 2026. Which exchanges are registered, which were blocked, and their fees and features are on exchanges.
Self-custody
We found no rule to register your own wallet, and crypto in it is taxed the same way when you sell. If you buy directly from another person, you may have to deduct the 1% TDS yourself. More on regulation.
Sources
Each topic page lists all the sources it uses. The main ones:
- Income Tax Department: Income-tax Act, 2025, section 194 (Tax on certain incomes) (last checked October 2026)
- Income Tax Department: Income-tax Act, 2025, section 393 (tax to be deducted at source) (last checked October 2026)
- Ministry of Finance: Memorandum explaining the provisions in the Finance Bill, 2026 (last checked October 2026)
- CBDT: Circular No. 07/2026, extension of timelines for AY 2026-27 (last checked October 2026)
- Lok Sabha: Unstarred question 5805, Regulation of Virtual Digital Assets in the Country (30 March 2026) (last checked October 2026)
- PIB: FIU-IND issues notices for non-compliance to 15 Virtual Digital Assets Service providers (9 September 2026) (last checked October 2026)
- RBI: Customer Due Diligence for transactions in Virtual Currencies (VC), 31 May 2021 (last checked October 2026)
This page is general information, not legal or tax advice. Rules and rates change, so check the official sources before you act.