Crypto mining in India is not illegal, but a 30% tax, no deductions, and strict monitoring make it nearly impossible to profit. Learn the 2025 rules, penalties, and why miners are leaving.
India Crypto Tax: What You Need to Know in 2025
When you trade or hold India crypto tax, the set of rules imposed by the Indian government on cryptocurrency transactions, including income tax, TDS, and reporting obligations. Also known as cryptocurrency taxation in India, it applies to everyone who buys, sells, or earns crypto—even if you’re just holding it for a few days. Unlike traditional investments, crypto in India is treated as a separate asset class with no deductions, no loss carryforwards, and no exemptions for long-term holdings.
The 30% tax, a flat income tax rate applied to all crypto gains in India, regardless of how long you held the asset hit hard when it launched in 2022. There’s no sliding scale—whether you made ₹5,000 or ₹5 million, you pay 30%. On top of that, 1% TDS, a tax deducted at source on every crypto trade above ₹10,000, regardless of profit was added in 2023. That means even if you break even, you still lose 1% upfront. And if you’re using Indian exchanges like CoinDCX or WazirX, they automatically withhold it. No choice. No appeal.
What about reporting? The Indian Income Tax Department, the government body that enforces crypto tax rules and cross-checks data with exchanges and international agencies now requires you to declare crypto in your ITR form under Income from Other Sources. They’re also part of the global CARF, the Crypto Asset Reporting Framework, a new OECD standard that forces countries to automatically share crypto transaction data. Starting in 2026, India will automatically send your exchange data to 67 other countries—and receive theirs in return. So if you traded on Binance or Kraken and didn’t report it, they already know.
And here’s the catch: you can’t offset crypto losses against other income. If you bought Bitcoin at ₹50 lakh and sold it at ₹30 lakh, you still owe tax on the ₹30 lakh sale. No deduction. No relief. Even if you lost money overall, the government taxes every single profitable trade. That’s why so many Indian crypto users now track every single transaction—down to the rupee—using tools like Koinly or CoinTracker. You don’t need to be an accountant, but you do need to be organized.
What about airdrops and staking rewards? They’re taxable too. If you got free tokens from a promo or earned interest on your crypto, the fair market value at the time you received it counts as income. Same rule applies to NFTs—if you sold one for profit, it’s taxed at 30%. There’s no gray area. The rules are clear, strict, and enforced.
Below, you’ll find real breakdowns of how these rules play out in practice. From how to calculate your tax bill after multiple trades, to why some Indian users are moving to offshore platforms (and what risks that brings), to how scams like fake tax refunds are targeting crypto holders. These aren’t theory pieces—they’re based on what’s actually happening to people filing returns in 2025. You don’t need to be a tax expert to understand this. You just need to know what’s real—and what’s not.