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For individualsRates reviewed September 2026

Crypto Tax Calculator: 30% on Virtual Digital Assets and 1% TDS

Income from transferring a virtual digital asset, which covers cryptocurrencies, NFTs and any other crypto-asset on a distributed ledger, is taxed as a block at a flat 30 percent under section 194 (Table: Sl. No. 4) of the Income-tax Act, 2025, the successor to section 115BBH of the 1961 Act. Your slab does not matter, the holding period does not matter, and the only deduction is the cost of acquisition. This calculator works out the tax for FY 2026-27 (tax year 2026-27) with surcharge, cess and the TDS already deducted.

The harshest rule is the one on losses. The Act says no set-off of a loss from the transfer of a virtual digital asset shall be allowed against income computed under any provision, and that such a loss shall not be carried forward. That means a loss on one coin cannot reduce the gain on another, cannot reduce salary or business income, and is not available next year. Each profitable transfer is taxed in full and each loss-making one is simply lost, which is why the calculator shows the other losses separately rather than netting them.

On top of the tax, anyone paying consideration for a VDA has to deduct tax at 1 percent under section 393(1) (Table: Sl. No. 8(vi)), formerly section 194S, once the year's consideration exceeds ₹50,000 for a specified person or ₹10,000 for anyone else. A specified person is an individual or HUF with no business income, or whose turnover in the preceding year was within ₹1 crore for a business or ₹50 lakh for a profession. The TDS is a credit against the 30 percent, not an extra tax, and on a loss-making year it comes back only through the return.

Crypto Tax Calculator

The total consideration received on every transfer in FY 2026-27, whether in rupees or in another VDA.

₹

The only deduction allowed. Exchange fees, gas fees and interest are not deductible.

₹

Shown so you can see that they cannot be set off against the gains above or against any other income.

₹
Seller is a specified person

An individual or HUF with no business income, or with turnover up to ₹1 crore (₹50 lakh for a profession) in the preceding year. The TDS threshold is ₹50,000 for a specified person and ₹10,000 for anyone else.

Salary, business and other income, used only to fix the surcharge rate. Its own tax is not shown here.

₹

The 30% rate is the same in both. Only the surcharge bands differ, with a 37% band above ₹5 crore in the old regime.

Tax on crypto gains

₹1,24,800

30% flat plus 4% cess, FY 2026-27

Sale consideration
₹10,00,000
Cost of acquisitionthe only deduction section 194 allows
₹-6,00,000
Net gain on transfertaxed as a block at the flat rate
₹4,00,000
Losses on other VDA tradescannot be set off against these gains or any other income, and cannot be carried forward
₹1,00,000
Tax at 30%on ₹4,00,000, regardless of your slab or holding period
₹1,20,000
Surchargetotal income of ₹19,00,000 is within ₹50 lakh
₹0
Health and education cess at 4%
₹4,800
Total tax on VDA income
₹1,24,800
TDS deducted at 1%on the ₹10,00,000 sale consideration, above the ₹50,000 threshold
₹-10,000
Balance tax to paythrough advance tax or self-assessment tax
₹1,14,800
  • A loss from the transfer of a virtual digital asset cannot be set off against any income, including gains on another VDA, and cannot be carried forward. Section 194 (Table: Sl. No. 4) of the Income-tax Act, 2025 (section 115BBH of the 1961 Act) is explicit on both points.
  • Rates are for FY 2026-27. The flat 30% applies under both regimes, with surcharge at the ordinary rates on total income and 4% cess. The 15% surcharge cap for dividends and listed equity gains does not extend to VDA income, and marginal relief at a surcharge threshold is not worked out here.
  • TDS at 1% under section 393(1) (Table: Sl. No. 8(vi)) of the 2025 Act (section 194S) is deducted on the consideration, not the gain, once the year's consideration crosses ₹50,000 for a specified person. It is a credit against the tax, not an extra tax.

The formula

Tax = (Sale consideration − Cost of acquisition) × 30% + Surcharge + 4% cess, less TDS at 1% of the sale consideration

Cost of acquisition
What you paid for the asset. Exchange fees, gas fees, interest and every other expense are expressly disallowed under section 194 (Table: Sl. No. 4, Note (a)).
Flat 30%
Charged on the net gain from every transfer regardless of your slab rate or how long the asset was held. The same rate applies under both regimes.
Surcharge
At the ordinary rates on total income including the VDA gain: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and, under the old regime only, 37% above ₹5 crore.
TDS at 1%
Deducted by the buyer or exchange on the consideration, not the gain, once the year's consideration exceeds ₹50,000 for a specified person or ₹10,000 otherwise.

The 15 percent surcharge cap that applies to dividends and gains under sections 111A, 112 and 112A does not extend to VDA income. Marginal relief at a surcharge threshold is not worked out here.

How to calculate it

  1. 1

    Aggregate the consideration on every transfer

    Add up what you received on each sale or swap during the year, including transfers paid for in another crypto-asset, valued at the time of transfer. The Act applies the definition of transfer to a VDA whether or not it is a capital asset, so trading stock, investments and swaps are all inside the net.

  2. 2

    Deduct only the cost of acquisition

    Set off the purchase price of the assets transferred. Exchange fees, network fees, interest on borrowed funds, subscription costs and every other expense are disallowed, and no allowance of any kind is available. Keep the purchase records for each lot, because the burden of proving the cost is on you.

  3. 3

    Leave the losses out

    A transfer that produced a loss gives you nothing: it cannot be set off against the gains on other transfers, against any other head of income, or against next year's gains. Compute the tax on the gains alone and treat the losses as sunk. Entering them in the calculator only shows you what they would have been worth under normal rules.

  4. 4

    Apply 30 percent, surcharge and cess

    Charge the net gain at 30 percent. Add surcharge if your total income including the gain crosses ₹50 lakh, at the ordinary rate for your regime, and then 4 percent health and education cess on the tax and surcharge together. Section 87A rebate is not available against this income.

  5. 5

    Credit the TDS and pay the balance

    Subtract the 1 percent deducted by the exchange or buyer, which appears in Form 26AS against section 194S. Pay the rest through advance tax instalments as the gains arise, or as self-assessment tax before filing. Report every transaction in Schedule VDA of ITR-2 or ITR-3, since the income there must not be less than the gross receipts reported against the TDS.

How virtual digital assets are taxed for FY 2026-27 (tax year 2026-27)

How virtual digital assets are taxed for FY 2026-27 (tax year 2026-27)
ItemRuleProvision of the 2025 Act (1961 Act)
Rate of tax on the gainFlat 30%, plus surcharge and 4% cessSection 194, Table Sl. No. 4 (section 115BBH)
DeductionsCost of acquisition only; no other expenditure or allowanceSection 194, Note (a) (section 115BBH(2)(a))
Loss on a VDA transferNo set-off against any income and no carry-forwardSection 194, Note (b) (section 115BBH(2)(b))
TDS on the consideration1% of the consideration, credited against the taxSection 393(1), Table Sl. No. 8(vi) (section 194S)
TDS threshold, specified personNo deduction where the year's consideration is within ₹50,000Section 393(4), Table Sl. No. 12 (section 194S(3))
TDS threshold, any other personNo deduction where the year's consideration is within ₹10,000Section 393(4), Table Sl. No. 12 (section 194S(3))
Payment in kind or in another VDAThe payer must ensure the tax is paid before releasing the considerationSection 393(1), Note 6 (section 194S(4))

Worked example: ₹10,00,000 of crypto sold for a ₹4,00,000 gain, FY 2026-27

Aggregate sale consideration
₹10,00,000
Aggregate cost of acquisition
₹6,00,000
Losses on other VDA trades in the year
₹1,00,000
Seller
Specified person, new regime
Other total income
₹15,00,000
  • Net gain = ₹10,00,000 − ₹6,00,000 = ₹4,00,000; the ₹1,00,000 loss on other trades is not set off
  • Tax at 30% = ₹1,20,000
  • Total income of ₹19,00,000 is within ₹50 lakh, so no surcharge
  • Cess at 4% of ₹1,20,000 = ₹4,800, total tax ₹1,24,800
  • TDS at 1% of ₹10,00,000 = ₹10,000, already deducted by the exchange
  • Balance to pay = ₹1,24,800 − ₹10,000 = ₹1,14,800

Tax on crypto gains = ₹1,24,800, of which ₹10,000 was deducted at source and ₹1,14,800 remains payable

Frequently asked questions

Income from the transfer of any virtual digital asset is taxed at a flat 30 percent under section 194 (Table: Sl. No. 4) of the Income-tax Act, 2025, which carries forward section 115BBH of the 1961 Act, plus surcharge where total income crosses ₹50 lakh and 4 percent health and education cess. The rate is the same whatever your slab, whether you held for a day or five years, and under both regimes. The e-filing portal's ITR-2 FAQs describe it as a special rate of 30 percent along with applicable surcharge and cess.
No. The Act states that no set-off of loss from the transfer of a virtual digital asset shall be allowed against income computed under any provision, and that such loss shall not be allowed to be carried forward. A loss on one coin cannot reduce the gain on another, cannot reduce salary, business or capital gains income, and is not available in a later year. Each profitable transfer is taxed on its own and each loss is simply lost.
Only the cost of acquisition. Section 194 (Table: Sl. No. 4, Note (a)) says no deduction in respect of any expenditure other than cost of acquisition, and no allowance, shall be allowed in computing the income. Exchange trading fees, withdrawal fees, network or gas fees, interest on money borrowed to buy, and the cost of hardware wallets or subscriptions are all disallowed. Keep the purchase records for each lot because the cost has to be proved.
Any person paying consideration for a VDA to a resident deducts 1 percent under section 393(1) (Table: Sl. No. 8(vi)), the successor to section 194S, once the year's consideration exceeds the threshold. Section 393(4) sets that at ₹50,000 for a specified person, being an individual or HUF with no business or professional income or whose turnover in the preceding year was within ₹1 crore for a business or ₹50 lakh for a profession, and ₹10,000 for everyone else. On an exchange the exchange deducts it.
No. It is tax collected in advance on the sale consideration and is credited against your final liability when you file the return, where it appears in Form 26AS against section 194S. If the 30 percent tax on your net gains is less than the TDS, for example because most of your trades made a loss, the excess is refunded after the return is processed. It is not refunded any other way, so a loss-making year still needs a return.
Surcharge applies at the ordinary rates on total income including the VDA gain: 10 percent above ₹50 lakh, 15 percent above ₹1 crore, 25 percent above ₹2 crore and, under the old regime only, 37 percent above ₹5 crore. The 15 percent cap applies only to dividends and to gains under sections 111A, 112 and 112A, so it does not extend to VDA income. Health and education cess of 4 percent is charged on the tax and surcharge together.
Yes for NFTs and swaps. The definition of virtual digital asset covers non-fungible tokens and any crypto-asset on a cryptographically secured distributed ledger, and the Act applies the definition of transfer to a VDA whether or not it is a capital asset, so exchanging one coin for another is a transfer at the value received. Where the consideration is wholly in kind or in another VDA, the payer has to ensure the 1 percent tax is paid before releasing it. A VDA received as a gift is a separate charge in the hands of the recipient.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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