India

• Gains from VDA transfers classified under Section 115BBH.
• Taxable on sale, exchange, spending, or crypto-to-crypto swaps.
• No short-term/long-term distinction; applies to all holdings.
• No exemptions or thresholds; only cost of acquisition deductible.
• Losses cannot be set off against any income or carried forward.
• Use FIFO method for cost basis.

• Mining rewards taxed as other income at slab rates on FMV at receipt.
• Staking rewards taxed at slab rates on FMV at receipt.
• Airdrops and other receipts taxed at slab rates if value > ₹50,000.
• Subsequent transfer of received VDAs: gain (sale - FMV) taxed at 30%.
• Business income from VDAs reported in ITR-3 at slab rates if applicable.

• Report all VDA acquisitions/transfers in Schedule VDA of ITR-2 (capital gains) or ITR-3 (business).
• Details: date acquired/transferred, INR cost, full consideration per transaction.
• Verify 1% TDS credits in Form 26AS/AIS.
• File ITR by July 31 for non-audit cases; advance tax if liability > ₹10,000.

• 1% TDS under Sec 194S on transfers > ₹50,000 (₹10,000 for specified persons/businesses).
• Gifts to relatives: no tax on transfer; recipient basis is FMV.
• Budget 2026 retains 30% tax/1% TDS; adds ₹200/day penalty for non-filing, ₹50,000 for inaccurate reporting.
• Crypto-assets included in financial account reporting from 2026.
• Foreign exchanges: buyer/supplier may need to deduct TDS.