Crypto Tax Reporting India: What You Need to Know About Filing Crypto Taxes in India

When you trade, earn, or sell cryptocurrency in India, you’re not just participating in a digital economy—you’re creating taxable income. Crypto tax reporting in India, the legal requirement to declare gains and income from digital assets to the Indian Income Tax Department. Also known as cryptocurrency taxation, it applies to every transaction: buying Bitcoin, selling Ethereum, earning staking rewards, or even receiving an airdrop. Since 2022, India has treated crypto as a taxable asset class, not currency. That means every time you sell or swap a coin for profit, you owe tax—no exceptions.

Cryptocurrency taxes in India, a 30% flat tax on profits from crypto trades. Also known as crypto capital gains tax, this rate applies regardless of how long you held the asset—unlike stocks, where holding longer often lowers your tax burden. There’s no deduction for losses. If you bought Bitcoin at $30,000 and sold it at $40,000, you pay 30% on the $10,000 gain—even if you lost money on other trades. Plus, a 1% TDS (Tax Deducted at Source) kicks in on every trade over ₹50,000 (or ₹10,000 in a single month), taken automatically by exchanges like HTX or Blockchain.com. You can’t ignore it. The government tracks wallet addresses, exchange records, and even airdrop claims through CoinMarketCap data.

Crypto income tax, applies to rewards from staking, lending, or mining. Also known as crypto earnings tax, these are treated as ordinary income at your marginal rate, not capital gains. If you earned RDNT tokens from staking on Radiant Capital or SAKE points from SakePerp, their value at the time you received them is taxable. Even if you didn’t sell them yet. The same goes for NFT airdrops like the HashLand HC NFT or XCV tokens—if you claim them, you owe tax on their fair market value. And yes, that includes scams like WOR or BULT—if you received them, you still have to report them.

Many people think if they didn’t cash out to INR, they don’t owe tax. That’s wrong. Swapping Dogecoin for Solana? Taxable. Using crypto to buy a laptop? Taxable. Even gifting crypto above ₹50,000 to someone who isn’t a relative triggers a tax liability. The rules are strict, the penalties are harsh, and the audit risk is rising. The IT Department has partnered with blockchain analytics firms to trace transactions across exchanges and DeFi protocols.

You don’t need to be a pro to get this right. Keep a simple log: date, coin, amount, purchase price, sale price, and whether it was a trade, reward, or gift. Use free tools to track your wallet activity. File your ITR-2 form with Schedule CG for capital gains. Don’t wait until April. Start now—because in India, crypto tax reporting isn’t optional. It’s the law.

Below, you’ll find real-world examples of crypto projects, exchange behaviors, and airdrop risks—all tied to how tax obligations form. Whether you’re holding RDNT, trading on HTX, or chasing an XCV airdrop, knowing the tax impact changes everything.