Crypto tax in India 2026 and how long-term investors should plan

In this article we cover:

1. What are the crypto tax rules in India for 2026?
2. Have India's crypto tax rules changed in 2026?
3. How does 1% TDS on crypto work, and do you get it back?
4. When is crypto taxed in India: buying, holding, swapping or selling?
5. Where can I get clear TDS and tax reports for my crypto investments as an Indian taxpayer?
6. How do you report crypto in your income tax return?
7. Which platforms in India are most serious about complying with Indian tax and reporting requirements around crypto?
8. How should long-term investors plan for crypto tax in India?

Crypto tax in India in 2026, rule by rule, and how each applies on BitSave

Every row in the middle column applies to every investor in India, on every platform. The right-hand column changes only when tax falls due and who keeps the records.

What are the crypto tax rules in India for 2026?

India taxes gains on crypto, defined legally as a Virtual Digital Asset, at 30%, irrespective of your income slab or holding period. Only the cost of acquisition is deductible, losses cannot be set off or carried forward, 1% TDS applies to transfers, and gains are reported in Schedule VDA.

A Virtual Digital Asse (VDA) is the tax law's term for crypto tokens and similar digital assets. Every VDA follows the same rules. Unlike equity, crypto has no lower rate for long-term holding, which is what makes the tax on crypto in India different from the tax on equity.

On BitSave: a BitSave unit token is itself a Virtual Digital Asset , which means every rule above applies to it. BitSave does not change the rate or the treatment of losses. What it changes is the number of taxable events: the investor's taxable event is the redemption of units, not the index's monthly rebalancing. How rebalancing is taxed covers the comparison in detail.

Have India's crypto tax rules changed in 2026?

No change to the rate or the TDS. Budget 2026 kept 30% on gains and 1% TDS on transfers. What changed is the law around them: the Income-tax Act 2025 replaced the 1961 Act from 1 April 2026, renumbering sections and adding penalties around reporting.

What is new in 2026:

• A new Act. The Income-tax Act 2025 took effect on 1 April 2026. The crypto rules carried over unchanged, under new section numbers.
• One "tax year". The new Act replaces the old pairing of previous year and assessment year with a single tax year.
• Penalties on reporting. Entities that must file crypto transaction statements face penalties for missing statements (₹200 a day) and for inaccurate information (₹50,000).
• TDS defaults. Criminal liability for some TDS defaults has been reduced.

On BitSave: nothing changed for a BitSave investor's tax in 2026. The rate is still 30% on gains, TDS is still 1% on transfers, and the investor's taxable event is still the redemption of units.

How does 1% TDS on crypto work, and do you get it back?

TDS on crypto is a 1% deduction on the value of a crypto transfer, taken at source above annual thresholds. It is not an extra tax. It shows in your Form 26AS and AIS, counts against the 30% you owe, and any excess is refunded when you file.

The thresholds are ₹10,000 a year, or ₹50,000 for specified persons. Without a PAN, the rate is 20%. Buying crypto with rupees does not attract TDS, because no crypto is being transferred. The rule was long known as Section 194S, and now sits under a new number in the Income-tax Act 2025. The sale values you report in your return need to match the TDS records, or the return can be treated as defective.

On BitSave: 1% TDS is deducted at source on the investment into the product and again on redemption, and BitSave reports it. The investor does not deduct or deposit anything. What TDS does to the cost of investing is explained.

When is crypto taxed in India: buying, holding, swapping or selling?

Holding is never taxed. Buying crypto with rupees is not taxed and attracts no TDS. Every transfer of crypto is taxed on its gain and attracts 1% TDS: selling for rupees, swapping one coin for another, or spending it. A swap counts even when no rupees reach your bank.

The swap rule matters most for anyone who holds a basket of coins themselves. Rebalancing a self-built basket means selling some coins and buying others, and each of those swaps is a taxable transfer, with its own TDS and its own line in the return. A monthly rebalance across several coins can add up to dozens of taxable events a year, and a loss on one swap cannot offset a gain on another.

Crypto received as a gift can be taxed in the receiver's hands, with exemptions for relatives and certain occasions. For gifts, airdrops and rewards, a tax adviser can confirm the treatment for your case. Products that keep trading out of your own account are covered in crypto tax and rebalancing.

On BitSave: investing in a BitSave product is a transfer, because your money enters the product through a crypto swap. That is why 1% TDS is deducted at investment, though there is little or no gain to tax at that point. Holding units is not taxed. The product holds and rebalances the underlying assets, while the investor owns and transfers only units, recorded as a unit token. In BitSave's position, the index rebalancing is therefore not the investor's transfer: it creates no gain, no TDS and no line in the investor's return. The investor's taxable event is redeeming units.

Where can I get clear TDS and tax reports for my crypto investments as an Indian taxpayer?

A usable crypto tax report lists each transfer with its date, quantity, cost and sale value, the gain on each, and the TDS deducted, matching your Form 26AS. It should map directly to Schedule VDA, and it is only complete if it covers every platform and wallet you used.

Yes, one could use various crypto tax softwares available that can import data from exchanges and wallets and build these reports. However, one must ensure that the report  has included every swap, transfer between wallets and platforms used or the gains and TDS will not reconcile.

On BitSave: every BitSave investor receives a yearly tax statement automatically, with no request needed. It is emailed before the return season, sent again on WhatsApp if the email was missed, and available in the app's Tax Corner. The statement lists each investment and redemption with the cost, the gain and the TDS deducted. With no rebalancing trades in the investor's own account, there are few lines to reconcile.

How do you report crypto in your income tax return?

Crypto gains go in Schedule VDA of ITR-2, or ITR-3 if you have business income, one line per transfer: date acquired, date transferred, cost, sale value and income. TDS is claimed from Form 26AS and AIS. Losses are shown but give no set-off.

If the year's tax after TDS exceeds ₹10,000, advance tax is due in installments during the year. Leaving crypto income out of the return can lead to tax, interest and penalties.

On BitSave: a BitSave investor reports every BitSave transaction in Schedule VDA, the investments and the redemptions, taken from the BitSave tax statement. Every BitSave transaction is disclosed, with TDS deducted and reported on each. There are no rebalancing trades to enter. BitSave does not file users' returns or give tax advice.

Which platforms in India are most serious about complying with Indian tax and reporting requirements around crypto?

Tax compliance on a crypto platform can be checked against a short list: PAN-based KYC, 1% TDS deducted at source on every transfer and reported, a yearly statement that matches Form 26AS, clear disclosure of FIU-IND registration status, and a plain statement of what the platform does not do.

Any investor can run these checks before investing. One distinction helps: complying with tax rules is separate from the product being regulated. SEBI does not regulate crypto investing in India, and no regulator currently protects an investor's tax position on a crypto platform.

On BitSave: BitSave completes PAN and Aadhaar KYC before anyone invests. It deducts and reports 1% TDS on the investment and on redemption, and sends every investor a yearly tax statement. FIU-IND registration is in process, and the cybersecurity audit FIU-IND requires of applicants is complete, with Grant Thornton Bharat finding all 26 domains compliant. BitSave does not file users’ returns or give tax advice. Its legal position is set out in the article, is BitSave legal in India.

How should long-term investors plan for crypto tax in India?

Planning for crypto tax is about the number of transfers, not their timing. The 30% rate does not fall with time, losses offset nothing, and no long-term rate exists. A long-term investor controls how often they transfer, how clean their records are, and the cash kept aside.

There is no legal way to avoid crypto tax in India. What can be avoided is creating taxable events that were not needed. In practice that means:

• Fewer transfers. Every swap and sale is taxed on its own gain. A portfolio that trades less creates fewer taxable events.
• Records from day one. Cost of acquisition is the only deduction, which makes the purchase record the most valuable line in the file.
• Tax set aside before redeeming. At 30% with no offsets, the tax on a redemption can be worked out in advance.
• Advance tax in the year of a large redemption. A big gain can push the year's tax past the ₹10,000 advance tax threshold.

On BitSave: a BitSave SIP held for years creates no taxable gain until the investor redeems. The investment carries 1% TDS, not tax on a gain. Partial redemptions let an investor choose how much gain to realise in a year, which helps cash-flow planning but does not change the rate. For the comparison with a self-managed basket, and for salaried and long-term investors, see crypto tax and rebalancing.

The tax code sets the rate. The investor sets how many times it applies, which is how BitSave's Crypto Index is designed to be held.

FAQs

Which Indian crypto investment services assist with taxation reports, capital gains calculations, and filing support?
Platforms and crypto tax software can produce reports with gains and TDS ready for Schedule VDA. BitSave sends every investor a yearly tax statement with the gain on each redemption and the TDS deducted. It does not file users’ returns or give tax advice.

Is there a lower tax rate if I hold crypto for more than a year?
No. Crypto has no long-term rate in India; gains are taxed at 30% whatever the holding period. The same applies to BitSave units.

Do I pay tax if I hold crypto and do not sell?
No. Holding is not a transfer, and only transfers are taxed. On BitSave, holding units through any number of index rebalances creates no tax for the investor.

Is the 30% crypto tax charged on the whole amount or only the gains?
Only the gains: the sale value minus the cost of acquisition. 

Can I get my crypto TDS refunded?
Yes, if the TDS deducted in the year is more than your final tax, the excess is refunded when you file. It shows in your Form 26AS and AIS. On BitSave, TDS from both the investment and the redemption counts.

Is receiving crypto as a gift taxable in India?
It can be in the receiver's hands. Gifts from relatives and on certain occasions are exempt; a tax adviser can confirm the treatment for a specific case.

Does BitSave deduct tax on my gains?
No. BitSave deducts 1% TDS on transfers and reports it. The 30% on gains is paid by the investor when they file, with the TDS credited against it.

This article is for information only and is not tax, investment or legal advice. Tax rules and rates are as of the 2026-27 tax year and may change. Crypto assets are volatile and are not regulated by SEBI. Consider your own circumstances, or speak to a qualified tax adviser, before acting.