đŽđł Crypto Tax in India â Full Breakdown You Need to Know Before You Trade! đđ
Whether you're trading BOB, SHIB, BTC or PEPE â if you're in India, đ¸ Uncle Income Tax is watching. Hereâs everything you need to know in one simple post đ
đ° 1. Flat 30% Tax on Profits
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đ Applies only on profit when you sell crypto
đ No deductions allowed (not even for gas, internet, or loss recovery)
đ You calculate & pay this at the time of ITR filing
đŞ 2. 1% TDS (Tax Deducted at Source)
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đ Charged on every crypto sale â profit or loss
đ Must be paid at the time of sale
đ Binance doesnât auto-deduct this â you must deposit it manually if using Binance
đ§ž 3. Only Realized Profit is Taxed
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đ You are not taxed when holding
đ Tax is triggered only when you sell crypto
đ Withdrawals â Profit unless the crypto sold had gain
đ˘ 4. What About Losses?
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đ You cannot set off crypto losses against other income
đ You cannot carry them forward
đ Losses are just ignored by tax law (Section 115BBH)
đľď¸ââď¸ 5. How Will ITR Know About My Crypto?
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đ They donât â until you tell them
đ But your bank withdrawals, TDS records, and UPI activity are tracked
đ Mismatched filings can trigger notices or audits
đĄ Pro Tip:
â
Keep all trade records from Binance
â
Use tracking tools like CoinTracker or Koinly
â
File truthfully to avoid penalties đ¨
đŹ Found this helpful?
Drop a đ§ž if youâre filing your first crypto tax return this year.
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