Audit-ready Crypto Tax Reports for Investors and Tax Advisors

Frequently Asked Questions

India Crypto Tax – Section 115BBH explained

India's VDA tax framework is one of the strictest globally. The 30% flat rate applies to every gain, there is no holding period benefit, no basic exemption, and losses cannot reduce your total tax liability. Understanding exactly what is taxable – and what is not – is essential.

What counts as a taxable VDA event

• Sale of cryptocurrency for INR
• Swap of one cryptocurrency for another
• Purchase of goods or services with crypto
• Receipt of crypto as payment, mining reward, staking reward, or airdrop
• Gift of crypto above ₹50,000 in value (taxable in the recipient's hands)

The no-loss-offset rule – why it matters

Under Section 115BBH, a loss from selling one VDA cannot be used to reduce a gain from another VDA in the same year. This is a critical difference from most other countries. If you sell Bitcoin at a loss and Ethereum at a gain on the same day, you pay 30% on the Ethereum gain and cannot subtract the Bitcoin loss.

TDS – 1% deducted at source

Exchanges deduct 1% TDS on the sale consideration. This TDS is a credit against your final tax liability and is visible in Form 26AS. CoinTaxReporting tracks the total TDS deducted so you can reconcile it against your ITR filing accurately.

Cost of acquisition – the only deduction allowed

Section 115BBH allows only the cost of acquisition as a deduction. No trading fees, no infrastructure costs, no interest expenses. Gain = Sale price minus cost of acquisition, taxed at 30% flat.