MulticalcCrypto Tax Calculator
Tax Summary
Enter buy and sell amounts to see your tax obligations under Section 115BBH.
Understanding Crypto Tax (VDA) in India
In India, cryptocurrencies and NFTs are classified as Virtual Digital Assets (VDAs). According to Section 115BBH of the Income Tax Act (introduced in Budget 2022), any income from the transfer of VDAs is taxed at a flat rate of 30%, regardless of your income tax slab or holding period.
How Tax, Cess & TDS Affect You
4% Cess (Surcharge)
The 30% tax is effectively 31.2% because of the mandatory 4% Health and Education Cess on the tax amount. (30% + 4% of 30%).
1% TDS (Tax Deducted at Source)
Under Section 194S, 1% TDS is deducted on Sell transactions exceeding ₹10,000/year (or ₹50,000 for specified persons). This TDS can be claimed back when filing ITR if your total liability is lower.
Profit vs. Loss: Real-World Scenarios
One of the strictest rules for Crypto tax in India is the inability to set off losses.
| Scenario | Bitcoin (Profit) | Ethereum (Loss) | Net Taxable Income |
|---|---|---|---|
| Stock Market Logic | + ₹1,00,000 | - ₹40,000 | ₹60,000 (Set-off allowed) |
| Crypto Tax Logic | + ₹1,00,000 | - ₹40,000 | ₹1,00,000 (No set-off!) |
How to Calculate Crypto Tax Liability
The formula is simple but strict:
Taxable Income = Selling Price - Cost of Acquisition
- Allowed Deductions: Only the purchase price (Cost of Acquisition).
- Disallowed Deductions: Platform fees, internet costs, advisory fees, software costs.
Frequently Asked Questions
Important Disclaimer
This tool provides an estimate based on current Indian Income Tax laws (AY 2025-26/2026-27). Tax laws are subject to change. The calculator assumes standard VDA transaction nature. We are not tax advisors; please consult a CA (Chartered Accountant) for official filing.
- ✓ Tax Rate: Flat 30% + 4% Cess
- ✓ No Slab Benefit: Applies regardless of income level
- ✓ Loss Set-off: Not Allowed
- ✓ Carry Forward: Not allowed to next year
Disclaimer
This calculator provides estimates based on current Income Tax laws (AY 2025-26/2026-27). Tax laws are subject to change. Always consult a Chartered Accountant (CA) for official tax filing and compliance.