How to Calculate Crypto Gains for Tax in India with Examples
Step-by-step maths for computing crypto gains under India's flat 30% rule: cost of acquisition, no loss set-off, the 1% TDS, and clear worked ₹ examples.
Calculating crypto gains for tax in India is simpler than most people fear, once you accept the rules: your gain is sale value minus cost of acquisition, taxed at a flat 30% under Section 115BBH, with no deductions beyond the purchase price and no set-off of losses. There is no long-term discount and no netting across coins. This guide walks through the maths with clear rupee examples so you can compute your own liability with confidence.
The hard part is not the arithmetic. It is the counter-intuitive rules that mean you can owe tax even when your overall portfolio is down. This is an educational overview; always confirm the current rules and your specific numbers with a qualified CA or the Income Tax Department.
Key takeaways
- Gain = sale value − cost of acquisition. Nothing else is deductible.
- Every gain is taxed at a flat 30% (plus 4% cess and any surcharge).
- Losses are ignored: no set-off against other coins or other income, no carry-forward.
- There is no short-term/long-term difference; holding period does not matter.
- The 1% TDS already deducted is credited against your final tax.
Step 1: Know your two numbers per trade
For each disposal you need only two figures:
- Cost of acquisition: the rupee amount you paid to acquire the coin.
- Sale value: the rupee amount you received on selling or swapping it.
The gain is the difference. You cannot add trading fees, gas fees, or platform charges to your cost, and you cannot subtract them from your proceeds for tax purposes. Only the acquisition cost counts. This is stricter than equity capital gains, where several costs are allowed.
Step 2: Apply the flat 30% to each gain
Multiply each positive gain by 30%, then add the 4% health and education cess (and surcharge if applicable). Because the rate is flat, your other income does not change it. Consider a single trade:
| Item | Amount (₹) |
|---|---|
| Sale value of Bitcoin | 1,50,000 |
| Less: cost of acquisition | 1,00,000 |
| Taxable gain | 50,000 |
| Tax @ 30% | 15,000 |
| Add: 4% cess | 600 |
| Total tax on this trade | 15,600 |
You can follow how coins like Bitcoin move in real time on our live markets page when planning the timing of a sale.
Step 3: Do NOT net losses against gains
This is where the maths diverges from common sense. A loss on one coin cannot reduce the gain on another, and cannot be carried to next year. Suppose you had the Bitcoin gain above plus a loss elsewhere:
| Trade | Cost (₹) | Sale (₹) | Gain/Loss (₹) | Counts for tax? |
|---|---|---|---|---|
| Bitcoin | 1,00,000 | 1,50,000 | +50,000 | Yes, taxed |
| Ethereum | 90,000 | 60,000 | −30,000 | No, ignored |
| Solana | 25,000 | 45,000 | +20,000 | Yes, taxed |
Your real profit is 50,000 − 30,000 + 20,000 = ₹40,000. But for tax you add only the two gains: ₹50,000 + ₹20,000 = ₹70,000. Tax at 30% is ₹21,000 plus ₹840 cess = ₹21,840, even though you actually earned only ₹40,000. The ₹30,000 Ethereum loss simply vanishes for tax. The mechanics behind this are covered in our crypto tax in India explainer.
Step 4: Handle swaps, airdrops, and staking
Gains are not only about selling for rupees. Swapping one coin for another is a disposal, so you calculate the gain in rupee terms at the time of the swap. Airdrops and staking rewards can also be taxable when received or disposed of. Track the INR value at the relevant date for each. If your activity is this varied, a CA's help is well worth it.
Step 5: Subtract the 1% TDS credit
The 1% TDS already deducted on your transfers is not a separate cost. It is tax paid in advance. After computing your total 30% tax, subtract the TDS collected during the year; you pay only the balance, or claim a refund if the TDS was higher. For the details, read what the 1% TDS on crypto means. Continuing the example above, if ₹1,000 of TDS had been deducted:
| Item | Amount (₹) |
|---|---|
| Total tax (incl. cess) | 21,840 |
| Less: 1% TDS already deducted | 1,000 |
| Net tax to pay at filing | 20,840 |
Step 6: Keep clean records
Accurate calculation depends on accurate records: dates, quantities, INR buy price, INR sell price, and TDS per transaction. Consolidate across every exchange and wallet you used. Once your numbers are ready, our ITR walkthrough for crypto shows how to report them, and if you are new to the asset class entirely, start with what is cryptocurrency. Remember too that all of this applies precisely because crypto is legal to hold and trade (see is cryptocurrency legal in India).
Frequently asked questions
Can I subtract exchange fees when calculating my gain?
No. Only the cost of acquisition is deductible under Section 115BBH. Fees, gas, and other costs cannot reduce your taxable gain.
Does it matter how long I held the coin?
No. There is no short-term/long-term distinction for crypto in India. The flat 30% applies whether you held for a day or several years.
Is swapping one coin for another taxable?
Yes, a swap is treated as a disposal. Compute the gain in rupee terms at the time of the swap. Confirm treatment of complex cases with a CA.
What if my total portfolio lost money? Do I still calculate gains?
Yes. Because losses cannot offset gains, you must still calculate and pay 30% on each profitable trade, even if your overall portfolio is down.
Once you internalise "tax the gains, ignore the losses, flat 30%", the calculation is quick. Use our live markets and AI forecasts to plan your trades, and always confirm your final numbers with a qualified CA or the Income Tax Department before filing.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
