(Because you don’t want to make profits and pay penalties)
👋 Hey, future crypto crorepatis!
You’ve probably heard stories like this:
“Bhai ne Bitcoin liya 3 lakh mein, becha 50 lakh mein… bas FIR bhi mil gaya free mein.”
Yup, that’s what happens when paisa toh kama liya, par tax bhool gaye.
Whether you’re HODLing, trading, staking, or just vibing with meme coins, here’s a no-jargon, no-fear guide to how India is treating your crypto not as cool cash, but as taxable income.
💰 What Counts as ‘Crypto’ in India?
Under Indian tax laws, crypto means:
- Bitcoin, Ethereum, Solana, Dogecoin (yes, even meme coins)
- NFTs (non-fungible tokens = digital flex)
- Any virtual digital asset (VDA)
So yes, even your funky monkey JPEG could be taxable.
🧰 How Does Tax Work on Crypto?
Here’s the simple, sasta, sundar explanation:
🔻 1. Flat 30% Tax on Profits
- Whether you gain ₹500 or ₹5 lakh from selling crypto — the tax is 30% on the profit.
- No deductions allowed. Not even if you lost sleep over the investment 😅
Example:
Bought Bitcoin at ₹1,00,000 → Sold at ₹1,50,000 = ₹50,000 profit
You pay: ₹15,000 (30% tax)
💸 2. 1% TDS on Every Trade
- Every time you buy/sell crypto worth over ₹10,000, the exchange deducts 1% as TDS (Tax Deducted at Source).
- Think of it like a mini pre-paid tax.
🧠 3. Losses Can’t Save You
Made a loss in one coin and gain in another?
Sorry, “adjust kar dena” doesn’t apply here. Losses in crypto can’t be set off against profits in crypto or anything else. 😓
🌐 What Is CARF & Why It Matters Now
India is now aligning with the Crypto-Asset Reporting Framework (CARF) – a global standard that basically means:
“No more hiding crypto abroad. We’ll know, you’ll pay.”
This allows international sharing of crypto transaction data to track tax evasion across borders.
If you’ve been using foreign exchanges, wallets, or P2P transfers — now is the time to clean up your records.
✅ What You Should Do as a Smart Investor
Here’s your Paisa Pyaar Portfolio Checklist 📜:
☑ Track your buy/sell prices in a Google Sheet
☑ Keep email receipts from exchanges
☑ Check if 1% TDS is being deducted
☑ Report crypto gains under “Income from Other Sources” while filing ITR
☑ Don’t wait till March 31st to panic — plan early!
❌ What NOT to Do
❌ Don’t hide foreign wallet activity
❌ Don’t assume it’s tax-free just because it’s on-chain
❌ Don’t ignore small profits — the taxman won’t 😬
🔐 Bonus: Are Airdrops & Staking Rewards Taxed Too?
Yes. Even “free crypto” isn’t really free in the eyes of the tax department:
- Airdrops = taxable at the value on the date of credit
- Staking/Mining rewards = also considered income
So… if you’re earning, you’re paying. Period.
💬 Final Thoughts – Crypto is Cool, But So is Compliance
In the world of crypto, transparency is the new flex.
The government isn’t saying “don’t invest.”
They’re saying: “Invest smart, report smarter.”
So if you’re running SIPs in coins or making side gains from NFTs, just file it right and chill. Because no one wants a notice from ITD ruining their bull run. 🐂
Paisa Pyaar Portfolio: Where Finance Feels Like Gupshup.
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