India's Crypto Taxation: Impact on Traders

Edited by: Yuliya Shumai

As of July 8, 2025, India's cryptocurrency market continues to be shaped by stringent taxation policies. The government levies a 30% tax on profits from Virtual Digital Assets (VDAs), including Bitcoin and Ethereum, with no changes announced in the 2025 Union Budget.

In addition to capital gains tax, a 1% Tax Deducted at Source (TDS) applies to VDA transactions exceeding ₹10,000 for salaried individuals and ₹50,000 for business transactions. Exchanges automatically deduct this TDS.

Furthermore, an 18% Goods and Services Tax (GST) is applied to crypto trading services. Bybit, for example, implemented this GST on July 7, 2025, on all crypto-related services for Indian users, calculated on transaction fees.

For instance, an investor selling Ethereum (ETH) for a ₹1 lakh gain would face approximately ₹33,180 in deductions, including capital gains tax, TDS, and GST on trading fees. The definition of VDAs was expanded on February 1, 2025, to include a wider range of digital assets.

Currently, Ethereum is trading at 2558.93 USD, reflecting a change of -4.29 USD (-0.00%) from the previous close. The intraday high is 2563.79 USD and the intraday low is 2520.72 USD.

Sources

  • CCN - Capital & Celeb News

  • Income tax on crypto currency: How did budget 2025 impact the taxation on virtual digital assets?

  • Bybit Imposes 18% GST on Indian Users, Discontinues Key Services

  • India Crypto Tax Framework In 2025 With Key Updates And Compliance Requirements

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