Crypto Tax India: Your Guide to Filing and Compliance
When dealing with crypto tax India, the set of tax rules that apply to cryptocurrency transactions for Indian residents, you need to understand several moving parts. The Capital Gains Tax, tax on profit from selling crypto assets is a core component, while GST on crypto, goods and services tax that may apply to exchange services adds another layer. All of this falls under the Indian Income Tax Act, the legal framework governing personal and corporate taxation in India. Together they shape how you report, pay, and stay clear of penalties.
First, record every buy, sell, swap, and airdrop with date, value in INR, and the exchange used. This data feeds directly into the capital gains calculation, which distinguishes short‑term (held ≤ 36 months) from long‑term gains. Short‑term gains are added to your regular income and taxed at your slab rate, while long‑term gains attract a flat 20% with indexation. Next, check whether the exchange you used charges GST; many Indian platforms embed a 18% GST on transaction fees, which you can claim as input tax credit if you’re a GST‑registered trader.
Key Compliance Steps
File your crypto earnings using ITR‑2 or ITR‑3, depending on whether you have business income. Include Schedule CG for capital gains and schedule GST for any input credits. Remember to report crypto‑related income even if you received tokens for free—the fair market value on the receipt date counts as taxable income. Finally, stay updated: the government frequently tweaks rules, and missing a deadline can trigger a 25% penalty plus interest.
Understanding these pieces will make crypto tax India less intimidating and help you stay compliant. Below you’ll find detailed articles breaking down each aspect, from filing forms to handling exchange fees, so you can take action with confidence.
