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What are the crypto rules in India?
India taxes crypto rather than banning it. Since 2022, income from transferring crypto ("virtual digital assets") is taxed at 30%, losses cannot be set off against other income, and 1% tax is deducted at source on transfers. Since March 2023, crypto service providers serving India must register with its Financial Intelligence Unit.
What it means for you
Taxed is not the same as fully regulated. India's rules set tax and anti-money-laundering duties; offshore exchanges that did not register were sent notices and their websites referred for blocking. Check whether a platform is registered before using it from India.
How it works
The Finance Act 2022 added a 30% tax on income from transferring virtual digital assets, with no deduction except the cost of acquisition and no set-off or carry-forward of losses. A separate provision requires whoever pays for a virtual digital asset to deduct 1% tax at source. In March 2023 service providers were brought under the Prevention of Money Laundering Act, and must register with FIU-IND whether they are onshore or offshore. In December 2023 FIU-IND issued notices to nine offshore providers and asked for their websites to be blocked.
Sources: Income Tax Department of India: Section 115BBH, tax on income from virtual digital assets, Income Tax Department of India: TDS on transfer of virtual digital assets, PIB (Ministry of Finance): FIU IND notices to nine offshore VDA service providers (28 Dec 2023) · checked 5 October 2026
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