Bitcoin Tax India: What You Need to Know About Crypto Taxes in 2025

When you buy, sell, or trade Bitcoin, a decentralized digital currency recognized by India’s tax authorities as a taxable asset. Also known as cryptocurrency, it’s not treated like cash — it’s treated like property. That means every trade, swap, or sale triggers a tax event in India. The government doesn’t care if you bought Bitcoin on Reku, WazirX, or a peer-to-peer app. If you made a profit, you owe tax.

Crypto tax India, a system introduced in 2022 that applies a flat 30% tax on gains from crypto transactions. Also known as digital asset taxation, it doesn’t allow losses to offset gains — a rule that catches many off guard. On top of that, there’s a 1% TDS (Tax Deducted at Source) on every crypto trade above ₹10,000. That’s not a fee — it’s a government withholding. Even if you break even overall, you still pay TDS on each transaction. And if you receive crypto as a gift, bonus, or airdrop? It’s taxable as income at your slab rate. No exceptions.

Indian crypto regulations, are strict but clear: you must report all crypto activity in your annual income tax return under Schedule 115BBH. Also known as cryptocurrency compliance, this isn’t optional — the IT department now cross-checks data from exchanges like Reku and other licensed platforms. If you didn’t report a $5,000 Bitcoin sale from last year, you’re at risk. Penalties can hit 100% of the unpaid tax, plus interest. And yes, they’re auditing people — not just big traders, but regular users who forgot to track their trades.

Some think moving crypto to a wallet outside India avoids tax. It doesn’t. The law follows the person, not the exchange. Others think staking rewards are tax-free. They’re not. Every reward you earn is income. Even if you don’t sell, you still owe tax on the value when you received it. The same goes for NFT sales, DeFi swaps, or using crypto to buy a phone. Each move is a taxable event.

You don’t need an accountant to handle this — but you do need records. Track every buy, sell, swap, and reward. Use a free tool or even a simple spreadsheet. The IRS doesn’t have jurisdiction here, but India’s tax department does. And they’re getting better at spotting patterns.

What you’ll find below are real, no-BS guides on how to handle your crypto taxes in India. From how to calculate gains on a Bitcoin trade to what happens if you ignore the rules, we’ve pulled together posts that cut through the noise. No theory. No guesswork. Just what you need to stay compliant — and avoid a nasty surprise when tax season hits.