Calculate crypto tax on Ethereum & other coins

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India taxes all VDA gains (crypto + NFT) at flat 30% + 4% cess, plus 1% TDS on every transfer. Same Section 115BBH rules.

Sec 115BBH Compliant 1% TDS Tracked Live Calculation

Crypto transaction

Same 30% flat tax applies to Bitcoin, Ethereum, Solana, or any Virtual Digital Asset.

Purchase value (cost basis)

Sale value

Crypto tax rules

30% flat — on gains, no slab benefit, no holding-period concession.
1% TDS — u/s 194S on every transfer ≥ ₹10K.
No losses set off — crypto losses dead-ended.
Each pair separately — ETH gains can\'t offset BTC losses.
Mining + staking — taxable at FMV when received as income.
P2P / overseas — same tax + must report in Schedule FA.

Total tax payable

₹1.25 L

30% flat tax + 4% cess on crypto gains, plus 1% TDS at source

Sale value₹10.00 L

Cost basis₹6.00 L

Gain₹4.00 L

Tax (30%)₹1.20 L (30%)

Cess (4%)₹4,800 (4%)

Total tax₹1.25 L

TDS at sale₹10,000 (1% TDS u/s 194S)

Net after-tax gain₹2.75 L

How crypto tax is calculated

Crypto gains (Ethereum, Bitcoin, altcoins, stablecoin swaps) are all treated as VDA under Sec 115BBH. Special 30% flat tax + 1% TDS.

01
Calculate gain
Sale value minus original purchase value (cost basis). No other deductions.
```
gain = sell − buy
```
02
Apply 30% tax
Flat rate; same regardless of holding duration or income bracket.
```
tax = gain × 0.30 × 1.04
```
03
Account for TDS
1% TDS already deducted on sale (≥ ₹10K) by exchange. Claim it as advance tax in ITR.
```
tds = sell × 0.01
```

FormulaTax = (sell − buy) × 30% × 1.04 (cess); TDS = sell × 1%Same rules for all VDAs: Ethereum, Bitcoin, stablecoins, NFTs, in-game tokens.

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Statute

Section 115BBH Income Tax Act

Crypto/VDA flat 30% tax regime applicable to Ethereum.

TDS Rule

Section 194S — 1% TDS

1% TDS on every crypto transfer ≥ ₹10K, including ETH.

Authority

CBDT Crypto Guidance

CBDT circulars on VDA reporting and taxation rules.

Tax SaaS

Koinly India

India-focused crypto portfolio tracker and tax tool.

Tax Reference

ClearTax Crypto

Indian crypto tax guide and Schedule VDA filing.

Exchange

WazirX / CoinDCX Tax Docs

Major Indian exchange tax documentation and reports.

FAQs about crypto tax

Why is crypto taxed at 30% in India?

Budget 2022 introduced Section 115BBH specifically to tax Virtual Digital Assets. Flat 30% rate (vs. slab) was set to discourage speculation. Effective from FY 2022-23 onwards.

Is staking and mining taxable?

Yes. Rewards received are taxable at fair market value on the day received (under "income from other sources"). When later sold, the gain (sale − value at receipt) is taxed at 30%.

What about losses across different coins?

Each VDA is treated separately. ETH gains cannot offset BTC losses, even though both are crypto. This makes diversification tax-inefficient under current rules.

Are crypto-to-crypto trades taxable?

Yes. Each conversion (e.g., ETH → BTC) is a separate sale + purchase. The deemed sale value (FMV at swap) creates a taxable event with capital gain or loss.

Does TDS apply to exchanges abroad?

Section 194S TDS applies to Indian exchanges and recognised Indian platforms. Foreign exchanges typically don't deduct TDS — but you still owe full tax. Buyer's responsibility on P2P deals.

What if I held since pre-2022?

Pre-FY-2022-23 gains: tax under regular capital gains rules (LTCG/STCG). Post 1-Apr-2022: 30% flat tax. Cost basis is original purchase price; tax accrues only at sale.

Can I claim deductions on crypto income?

No. Section 115BBH explicitly bars any deduction except cost of acquisition. No 80C, no expenses, no Section 80 deductions of any kind against VDA gains.

Must I report all wallet transfers?

Self-transfers between your own wallets are NOT taxable (no change in ownership). But you must maintain transaction records to prove this if Income Tax queries arise.

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Calculate crypto tax on Ethereum & other coins

Crypto transaction

Crypto tax rules

How crypto tax is calculated

Calculate gain

Apply 30% tax

Account for TDS

Section 115BBH Income Tax Act

Section 194S — 1% TDS

CBDT Crypto Guidance

Koinly India

ClearTax Crypto

WazirX / CoinDCX Tax Docs

FAQs about crypto tax

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