Crypto in India: Tax Rules and Record-Keeping Basics

Digital assets are treated differently from traditional securities under Indian tax law, and the rules can change. Gains from transfers of virtual digital assets are taxed at a special rate, and tax may also be deducted at source on transactions. Because of this, record-keeping is essential. Keep exchange statements, wallet addresses, purchase dates and costs, and the INR value at each transaction. Transfers between your own wallets should be documented so they are not mistaken for sales. Always check the latest provisions on the Income Tax Department website or with a qualified tax professional before filing, since rates, deductions and reporting requirements can be amended. This article is general information, not tax or investment advice, and crypto assets carry high risk.