Indian Crypto Tax Rules Explained

When dealing with Indian crypto tax rules, the set of regulations that dictate how cryptocurrency profits are taxed in India. Also known as crypto tax guidelines India, they affect anyone who buys, sells, or trades digital assets on Indian platforms.

One of the biggest pieces of the puzzle is capital gains tax, a tax on profits from the sale of assets such as crypto, calculated on the difference between purchase and sale price. The rule requires you to classify gains as short‑term (held ≤ 36 days) or long‑term (held > 36 days) and apply a flat 30 % rate on both. That's why tracking each transaction matters – missing a single trade can skew the whole calculation.

Another layer comes from GST on crypto, the Goods and Services Tax that the Indian government may apply to certain crypto services, especially when dealing with exchange fees or tokenized products. While the tax authority has been vague, many exchanges now collect a 0.5‑1 % GST on transaction fees, and you need to record those amounts for your input‑tax credit claims.

For non‑resident Indians, the landscape shifts to NRI crypto tax, the taxation rules that apply to Indian citizens living abroad, which still enforce a 30 % flat rate but without many of the domestic exemptions. NRIs often wonder if they can claim foreign tax credits or benefit from double‑taxation avoidance agreements – the answer is usually no for crypto, so careful planning is essential.

Finally, ignoring any of these rules can trigger harsh tax evasion penalties, fines, interest, and even prison time imposed by the Income Tax Department for failing to report crypto income. Recent cases show penalties up to $250 K and five‑year jail terms, so staying compliant isn’t just a nice‑to‑have, it’s a must‑have.

What You’ll Find Below

Below is a curated set of articles that walk you through each of these topics in depth – from step‑by‑step guides on filing returns, to real‑world examples of how NRIs handle their crypto taxes, and warnings about common pitfalls that lead to penalties. Dive in to turn the complex tax maze into a clear, actionable roadmap.