Crypto Tax Filing 2026: No Loss Set-Off, Gifts and Mining Also Taxed Under Strict VDA Rules
Cryptocurrencies can be bought, sold, and traded in India, but they are not legal tender. Still, the government treats them as virtual digital assets, and income from them is subject to tax rules. Every investor must report cryptocurrency gains while filing income tax returns under Schedule VDA.
The government charges a flat 30% tax on crypto income, along with a 4% cess. This rate stays the same for both short-term and long-term gains. There is no difference in tax based on how long the asset was held.
Crypto Tax Rates and TDS Rules
A 1% crypto TDS also applies when a person transfers crypto above a certain limit. This rule helps the government keep track of transactions. Small investors get some relief if yearly transfers stay within Rs. 10,000. In some cases, the limit goes up to Rs. 50,000.
Crypto tax rules cover almost every type of activity. Buying goods using crypto, trading coins, or converting crypto into INR all come under tax. Income from mining, staking, airdrops, and even gifts also gets taxed.
How to Report Crypto Income in ITR Filing 2026
ITR filing 2026 asks taxpayers to report crypto income based on how they use it. If crypto is held as an investment, income goes under capital gains. If trading happens regularly, income falls under business or profession. If someone receives crypto as a gift, it comes under income from other sources, and the receiver pays tax.
Loss rules remain strict for crypto investors. Losses cannot be adjusted against any other income or even other crypto gains. This makes tax planning harder and increases the overall tax burden.
Important Compliance Rules for Crypto Investors
Tax authorities now use strong systems to verify exchange data and match it with tax returns. Any mismatch may lead to notices or penalties. Proper reporting of cryptocurrency gains helps avoid such problems.
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
