India Crypto Tax: What You Need to Know
India crypto tax can feel confusing, but breaking it down into three core areas makes it manageable.
When working with India crypto tax, the set of rules that dictate how cryptocurrency profits are taxed in India. Also known as crypto taxation India, it covers income tax, capital gains, and GST obligations for traders and investors. Understanding capital gains tax, the levy on profit from selling crypto assets and GST, goods and services tax applied to crypto trading fees is essential, as is following RBI regulations, the Reserve Bank of India's guidelines that affect exchange licensing and KYC. These three pillars—income classification, indirect tax, and central bank policy—form the backbone of compliance.
Key Pillars of India Crypto Tax
India crypto tax encompasses capital gains tax when you sell or swap tokens. The rule is simple: if you hold a crypto asset for less than 36 months, any profit is treated as short‑term capital gain and taxed at your regular income slab; hold it longer and you fall into the long‑term bracket with a flat 20% rate. That semantic triple reads: *India crypto tax* encompasses *capital gains tax*.
Next, GST comes into play on the service fees you pay to exchanges. Even though the asset itself isn’t a goods item, the platform’s fee is a taxable service. The tax rate is currently 18%, and exchanges must issue GST invoices to users. This creates the relationship: *GST* applies to *crypto exchange fees*.
Finally, RBI regulations influence how exchanges report transactions to tax authorities. The RBI mandates that all crypto‑trading platforms register as recognized entities and maintain robust KYC/AML processes. Compliance with RBI guidelines means exchanges can share user data with the Income Tax Department, making the triple: *RBI regulations* require *exchange reporting*. Together, these pillars shape the overall tax landscape for Indian crypto participants.
Below you’ll find a curated list of articles that dive deeper into each of these areas—how to calculate your capital gains, navigate GST on trading fees, stay ahead of RBI’s evolving rules, and avoid common filing pitfalls. Ready to get compliant? Keep scrolling for practical guides and expert reviews that will help you stay on the right side of the law while you trade.
-
Non-Custodial Crypto Wallet Ban Proposals in India: What’s Really Happening?
India hasn't banned non-custodial crypto wallets, but heavy taxes and unclear rules make them hard to use. Learn what's really happening with self-custody, TDS, UPI limits, and what to do in 2025.
-
OECD Crypto-Asset Reporting Framework (CARF) Adoption in India: Timeline, Impact & Compliance
India will adopt the OECD Crypto-Asset Reporting Framework by April 2027, bringing offshore crypto holdings under tax reporting. Learn the timeline, legal changes, technical steps, and what it means for users and businesses.