Step-by-Step Crypto Tax Calculation in India
Step 1: Identify Taxable Events
In India, taxable events include: selling crypto for INR, trading crypto-to-crypto, receiving crypto as payment, and mining rewards.
Step 2: Calculate the Gain
Gain = Sale Price – Cost of Acquisition. Note: transaction fees are NOT deductible under current Indian law (except the original acquisition cost).
Step 3: Apply 30% Tax Rate
Multiply the gain by 30%. Add applicable surcharge and 4% cess.
Example
You bought Bitcoin for ₹1,00,000 and sold for ₹3,00,000. Gain = ₹2,00,000. Tax = ₹2,00,000 × 30% = ₹60,000 (plus cess = ₹62,400).