Disclaimer: Not tax advice. Consult a CA.

India’s Section 115BBH still treats crypto as “Virtual Digital Assets” (VDAs). Quick refresher:

Event Tax Rate Notes
Transfer/Trade 30 % flat on gains No slab benefits
TDS (Section 194S) 1 % on consideration Deducted at source by exchanges
Loss Offset Not allowed against any income Carry‑forward disallowed
Gift of VDA Taxed in recipient’s hands Fair‑value basis

Record‑Keeping Checklist

  • 🔹 Exchange trade history CSVs
  • 🔹 On‑chain wallet exports (Etherscan, Polygonscan)
  • 🔹 Fiat on‑/off‑ramp bank statements
  • 🔹 NFT & airdrop valuations (use price‑at‑receipt)

DIY vs. Software

  • DIY fine if <50 TX/year.
  • Otherwise use tools like KoinX, CoinTracker, or Zerodha Coin’s VDA module.

Pro Tip

Switching to LLP or Pvt Ltd? VDA gains still taxed at 30 %, but expense deduction opens up.