Complete Master Guide to Cryptocurrency Taxation in India (Section 115BBH)
Under the Finance Act 2022, the Government of India introduced Section 115BBH and Section 194S to govern Virtual Digital Assets (VDAs). All profits from trading, staking, or selling crypto tokens are taxed at a flat 30% plus 4% cess with zero deduction allowed except cost of acquisition.
Frequently Asked Questions (FAQs)
What is the tax rate on cryptocurrency gains in India?
Under Section 115BBH, any income from the transfer of Virtual Digital Assets (cryptocurrency, NFTs) is taxed at a flat rate of 30% plus 4% cess (effective 31.2%), regardless of holding period or total income slab.
Can crypto losses be set off against crypto gains or other income?
No. Under Section 115BBH, losses from one crypto transaction cannot be set off against gains from another crypto asset, nor can they be set off against any other income (salary, business, house property) or carried forward.
