Income from transferring a Virtual Digital Asset (crypto) is taxed at a flat 30% plus applicable surcharge and 4% health and education cess under s.115BBH of the Income-tax Act 1961, from AY 2023-24. No deduction is allowed except the cost of acquisition — you cannot deduct expenses like exchange fees or electricity from the gain. This calculator applies the exact rate including cess.

No. Loss from the transfer of a VDA cannot be set off against any other income, nor carried forward to future years — the loss is simply lost — per s.115BBH of the Income-tax Act 1961. This is one of the harshest features of the crypto regime, so the tool shows your gain and tax per matched sale rather than netting losses.

Section 194S of the Income-tax Act 1961 requires the buyer of a VDA to deduct TDS at 1% on the consideration paid to a resident seller, when the consideration exceeds ₹50,000 in a financial year (₹10,000 for specified persons). The TDS is creditable against the seller's final 30% tax, and the calculator nets the 194S credit against the seller's tax payable.

Receiving a VDA as a gift is taxable in the recipient's hands under s.56(2)(x) of the Income-tax Act 1961 where the value exceeds ₹50,000 (gifts from relatives and specified occasions are exempt). On a later transfer, the recipient pays 30% under s.115BBH on the gain from the gift-date value. The cost-basis mechanics for gifted VDAs have nuances — take advice before filing.

A VDA received through mining, staking or airdrops is treated as income from the transfer of a VDA under s.115BBH of the Income-tax Act 1961, taxed at 30% on its fair market value at receipt, per the CBDT's FAQ on virtual digital assets dated 22 June 2022. The tool lets you model mined/staked coins at their FMV so you can plan the tax hit.