Tax Rules Are Clear — Now It’s Your Turn to Stay Smart

Crypto isn’t banned in India — it’s regulated and taxed.

Since 2022, the government treats digital assets as a new asset class under Virtual Digital Assets (VDA).

2025 updates made it simpler but stricter — here’s everything you need to know 👇

➡️ Core Tax Rules for Crypto in 2025

  1. Flat 30 % tax on all crypto profits — no slab, no deduction.

  2. 1 % TDS on every sell or transfer (even P2P).

  3. Gifts & Airdrops > ₹50,000 → taxed as income.

  4. No loss set-off allowed.

  5. Staking / Mining rewards taxed at receipt market value.

🔃 Quick Example

Bought 1 ETH = ₹2,50,000 → Sold ₹3,00,000

Profit = ₹50,000

Tax = ₹15,000 (30 %)

TDS = ₹3,000 (1 %) auto-deducted

✅ Final profit after tax ≈ ₹32,000

😠 What Triggers Tax

  • ✔ Selling crypto for INR or fiat

  • ✔ Swapping one coin for another

  • ✔ Using crypto to buy goods / services

  • ✔ Receiving tokens (airdrop, payment, staking)

🚫 Holding crypto = not taxable until you sell or spend

🎭 How TDS Works on Binance P2P

  • Every time you sell, 1 % TDS deducted automatically.

  • Binance reports the transaction to the Income Tax Department.

  • PAN + KYC mandatory for credit claim in ITR.

💡 Check “Tax Report” under your Binance profile to download the summary.

▶️Staking & Earn Rewards

  • Counted as income on the day you receive them.

  • Later, when you sell those rewards → capital gains apply again.

  • Double-check reward value using Binance’s daily USDT rate.

🌏 Smart Tax Habits for Indian Traders

  1. 🧾 Use Binance CSV export or tax tools for record-keeping.

  2. 📅 File ITR-2 under “Income from Virtual Digital Assets.”

  3. 💸 Add foreign wallets in Schedule FA if you hold off-exchange assets.

  4. 🧮 Track TDS credits to avoid double payment.

  5. 🔐 Keep fee & timestamp logs for audit proof.

🃏 NFT & Gaming Rewards

  1. NFT sales = 30 % tax + 1 % TDS.

  2. Play-to-earn income taxed once converted to crypto or INR.

  3. In-game items held as NFTs = not taxable until sold.

⭐ What’s New Globally

  • OECD CARF (2025) - India aligning with global crypto-reporting standards.

  • CBDC Pilot - Digital Rupee is not taxed like crypto assets (yet).

➡️ Key Takeaways

  • 30 % flat tax on profits.

  • 1 % TDS on sales.

  • No loss adjustment.

  • Staking / NFT rewards taxable.

  • File accurately & claim TDS credits.

Smart traders don’t just earn —they stay compliant too.

#IndiaCryptoTax #IndiaCrypto