Crypto Tax: What You Need to Know About Digital Asset Taxes in India

When you trade, sell, or earn crypto tax, the legal obligation to report income from digital assets like Bitcoin, Ethereum, or NFTs. Also known as cryptocurrency taxes, it applies to anyone who buys, sells, or uses digital assets in India. The rules aren’t just about profit—you pay tax when you trade one coin for another, cash out to rupees, or even use crypto to buy groceries. The Indian government treats crypto as a taxable asset, not currency, and the tax rates can hit up to 30% on gains, plus a 1% TDS on every transaction.

Two big things people miss: NFT tax rules, how digital art and collectibles are classified differently from regular crypto, and token unlock, when large amounts of a coin are released into the market, often crashing prices and triggering taxable events. If you own an NFT and sell it for a profit, it’s not always taxed as capital gains—it might be treated as a collectible, which means a higher rate. And if you earn rewards from staking or airdrops, that’s income the moment you receive it, not when you sell. Even blockchain rewards, like tokenized loyalty points from retail programs, can be taxable if they have market value. Most people don’t track these transactions, but the IT department now has tools to trace wallet activity.

You don’t need to be a trader to be affected. If you bought Bitcoin in 2021 and sold it last year, you owe tax. If you got an NFT as a gift and sold it, you owe tax. If you mined crypto on your laptop—even if you didn’t cash out—you might still owe tax on the value at the time of receipt. The key is keeping records: dates, amounts, values in INR, wallet addresses, and transaction IDs. No receipts? You’re guessing—and guessing wrong could cost you fines or penalties.

Below, you’ll find real guides on how these rules apply—whether you’re holding NFTs, tracking token unlocks, or wondering if your loyalty points count as income. No fluff. Just what you need to know to stay on the right side of the law.

Cryptocurrency Regulation: Current Status by Country in 2025
Cryptocurrency Regulation: Current Status by Country in 2025

As of 2025, cryptocurrency regulation varies widely by country - from the EU's unified MiCA rules to India's 30% tax and China's full ban. Learn how different nations are shaping the future of digital assets.