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FY 2025–26 · AY 2026–27 · Section 115BBH & 194S

Crypto / VDA Tax Calculator

Flat 30% tax on gains from crypto, NFTs and virtual digital assets, plus 1% TDS under Section 194S — calculated live.

🪙 Asset type
Virtual Digital Asset (VDA)
💱 Transfer details
Sale / transfer value Consideration received on sale
Cost of acquisition Purchase price — only deduction allowed
🧾 TDS u/s 194S 1% on sale
Threshold applicable to you
TDS at 1% under Section 194S is deducted on the gross sale value once it crosses the threshold. It is not an extra cost — it is adjusted against your final tax liability. No expenses other than cost of acquisition are deductible, and losses cannot be set off or carried forward.

Tax computation

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Disclaimer: Indicative estimate under Section 115BBH & 194S of the Income-tax Act. Surcharge (if applicable) and set-off rules are not modelled here. Rates per Finance Act 2022 as amended.

How crypto & VDA is taxed in India

Since 1 April 2022, income from transfer of any Virtual Digital Asset — cryptocurrency, NFTs and other tokens — is taxed at a flat 30% under Section 115BBH, plus a 4% health & education cess. This rate applies regardless of your income slab or holding period. The only deduction allowed is the cost of acquisition; no expenses, indexation or brokerage can be claimed.

30%
Flat tax on VDA gains under Section 115BBH (any slab)
31.2%
Effective rate after the 4% health & education cess
1%
TDS under Section 194S on the sale / transfer value
₹0
Loss set-off or carry-forward allowed on VDAs

How the tax is calculated

Gain equals sale value minus cost of acquisition (never below zero). Tax is 30% of that gain, grossed up by 4% cess to an effective 31.2%. Separately, the buyer / exchange deducts 1% TDS on the full sale value under Section 194S once it crosses the threshold — this TDS is credited back against your final tax.

₹5,00,000 sale · ₹3L cost
Gain₹2,00,000
Tax (30% + cess)₹62,400
TDS 1% of sale₹5,000
₹10,00,000 sale · ₹6L cost
Gain₹4,00,000
Tax (30% + cess)₹1,24,800
TDS 1% of sale₹10,000
₹2,00,000 sale · ₹2.5L cost
Gain (loss ignored)₹0
Tax (30% + cess)₹0
TDS 1% of sale₹2,000
A loss on one VDA cannot be set off against gains on another VDA or against any other head of income, and cannot be carried forward. Each transfer is taxed independently on its own gain.

Key terms explained

Section 115BBH

Charges a flat 30% tax on income from the transfer of any virtual digital asset. It overrides your normal slab rate — even someone in the 5% slab pays 30% on crypto gains. Only the cost of acquisition is deductible.

Section 194S TDS

The buyer or exchange deducts 1% TDS on the sale / transfer value of a VDA. The threshold is ₹10,000 generally and ₹50,000 for specified persons. This TDS is adjusted against your final tax, not an added cost.

No loss set-off

Losses from VDAs cannot be set off against any income — including gains on other cryptos — and cannot be carried forward to future years. Each gain is taxed standalone; losses simply lapse.

Schedule VDA

Crypto and NFT transactions must be reported in Schedule VDA of the ITR, transfer by transfer. Correct disclosure of sale value, cost and TDS is essential to claim the 194S credit and avoid notices.

Frequently Asked Questions
How is crypto taxed in India?

Gains on transfer of a virtual digital asset are taxed at a flat 30% under section 115BBH, plus surcharge and cess. The rate is the same whether the holding is short or long term, and there is no basic exemption for this income.

Can I deduct expenses or set off crypto losses?

No. Only the cost of acquisition is deductible — not brokerage, gas fees, internet or infrastructure costs. A loss from one VDA cannot be set off against gain from another VDA or any other income, and cannot be carried forward.

What is the TDS on crypto transactions?

Section 194S requires 1% TDS on the consideration for transfer of a VDA. The threshold is ₹50,000 a year for specified persons and ₹10,000 for others. Indian exchanges deduct it automatically; peer-to-peer and foreign-exchange trades put the obligation on the buyer.

Are NFTs and crypto gifts taxable?

Yes. NFTs fall within the definition of a virtual digital asset. A VDA received as a gift is taxable in the recipient's hands under section 56(2)(x) unless it comes from a relative or on an occasion covered by the exemptions.

Do I have to report crypto even if I made a loss?

Yes. Schedule VDA in the ITR must report every transfer, gain or loss. Exchange data is also reported to the department, so an unreported trade shows up in your AIS.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.