VDA Taxation
Cryptocurrency Tax Calculator (Section 115BBH)
Under Section 115BBH of the Income Tax Act, any income arising from the transfer of Virtual Digital Assets (VDAs) including Bitcoin, Ethereum, and NFTs is taxed at a flat rate of 30% plus 4% cess, with 1% TDS deducted u/s 194S.
Trade Parameters Section 115BBH
*No deduction for electricity, mining rigs, or transfer fees is permitted by law.
Indian exchanges automatically deduct 1% TDS on sale transactions exceeding ₹10,000 (or ₹50,000 for specified persons).
Tax Calculation Summary
Total Tax Liability (31.2%)
₹ 15,600
Net Capital Gain:
₹ 50,000
Base Flat Tax (30%):
₹ 15,000
Health & Education Cess (4%):
₹ 600
Net Tax Payable (After 1% TDS):
₹ 14,100
Strict Statutory Rules for Crypto Taxation in India
- No Loss Set-Off: Losses incurred in one crypto trade (e.g. Ethereum) CANNOT be set off against gains made in another crypto trade (e.g. Bitcoin) or any other income head.
- No Loss Carry-Forward: Unabsorbed crypto losses cannot be carried forward to subsequent financial years.
- No Expenditure Deduction: The only deduction permitted under Section 115BBH is the actual cost of acquisition. Brokerage fees, transaction charges, or mining electricity costs are explicitly disallowed.
- Section 194S TDS: A 1% TDS is levied on the transfer of crypto assets on Indian and foreign peer-to-peer exchanges to create an audit trail.