India will implement the OECD Crypto-Asset Reporting Framework in 2027, forcing exchanges to share user crypto data globally. This move aims to close offshore tax evasion loopholes and bring transparency to one of the world's largest crypto markets.
Crypto Tax Reporting India: What You Need to Know in 2025
When it comes to crypto tax reporting India, the legal requirement to declare cryptocurrency gains and losses to Indian tax authorities under the 2022 Virtual Digital Asset (VDA) rules. Also known as VDA taxation, it applies to every trade, swap, or sale of Bitcoin, Ethereum, or any other digital asset—no matter how small. There’s no gray area here. If you bought crypto and sold it for more, you owe tax. If you traded one coin for another, that’s a taxable event too.
The India crypto tax, a flat 30% tax on profits from virtual digital assets introduced in the 2022 Union Budget. Also known as crypto gains tax, it doesn’t allow you to offset losses against other income or claim deductions for mining fees, gas costs, or exchange fees. That means if you lost ₹50,000 on one trade and made ₹70,000 on another, you still pay tax on the full ₹70,000. The government treats crypto like lottery winnings—not like stocks. And if you’re mining crypto in India, you’re taxed on the market value of the coins you mine the moment they hit your wallet, even if you never sell them. crypto mining India, a practice that’s not illegal but financially unviable under current rules due to the 30% tax and zero expense deductions. Also known as cryptocurrency mining law India, it’s why most miners have shut down or moved abroad.
Starting in 2026, India will start sharing your crypto transaction data with over 60 other countries under CARF, the Crypto-Asset Reporting Framework by the OECD that mandates automatic exchange of financial data between tax authorities. Also known as automatic exchange of crypto data, it means your exchange records, wallet addresses, and trade history could end up in the hands of Indian tax officials—even if you used a foreign platform like Binance or Kraken. The Income Tax Department already has access to KYC data from Indian exchanges like CoinSwitch and ZebPay. They’re cross-checking that data with bank statements, UPI transactions, and even wallet addresses you’ve linked to your PAN.
There’s no grace period. No amnesty. No hidden loopholes. If you didn’t report your crypto gains in 2023 or 2024, you’re already behind. The penalty for non-disclosure can be up to 200% of the tax due, plus interest. And if you’re caught using fake documents or shell wallets to hide transactions, you could face criminal charges under the Prevention of Money Laundering Act.
Below, you’ll find real cases, breakdowns of what the government tracks, and clear explanations of how to file your crypto taxes without overpaying—or getting flagged. No theory. No guesswork. Just what actually matters in India right now.