Cryptocurrency in India: A Guide to Taxation and Compliance in 2025

Example to Simplify:

Let’s say you bought Bitcoin for ₹1,00,000 and sold it for ₹1,50,000.

– Your Profit = ₹50,000

– Taxable Income = ₹50,000 (Cost of acquisition i.e., ₹1,00,000 is deducted)

– Income Tax @ 30% = ₹15,000

– Additionally, TDS at 1% would have been deducted by the buyer at the time of transaction on ₹1,50,000, which is ₹1,500.

So, in this simplified scenario, your net earnings after tax and TDS would be ₹1,50,0,00 – ₹15,000 – ₹1,500 = ₹1,33,500.