Crypto Tax Calculator for India
Calculate Your Tax Liability
This calculator shows how the 30% capital gains tax and 1% TDS apply to your crypto transactions in India
Enter your investment and selling details to see your tax liability
Buying cryptocurrency with Indian rupees isn’t just possible in 2025-it’s easier than ever. But it’s not as simple as opening an app and clicking "Buy." There are rules, taxes, and platform choices that can make or break your experience. If you’ve ever been confused by UPI limits, TDS deductions, or which exchange actually works for beginners, you’re not alone. Millions in India are doing it right, and here’s how you can too-without getting tangled in legal or financial traps.
Is It Legal to Buy Crypto with Rupees in India?
Yes. The Supreme Court overturned the Reserve Bank of India’s 2018 ban on crypto banking in 2020, and since then, trading and owning crypto has been fully legal. The government didn’t ban it-they taxed it. Starting April 1, 2022, any profit you make from selling crypto is taxed at 30%, plus a 4% cess. That’s steep, but it’s not a ban. You’re allowed to buy, hold, and trade. What’s not allowed? Avoiding taxes. Exchanges now automatically deduct 1% Tax Deducted at Source (TDS) on every buy or sell transaction, as required by Section 194S of the Income Tax Act. If you skip this, you risk penalties. So legality isn’t the issue. Compliance is.How to Start: The 5-Step Process
You don’t need to be a tech expert. Here’s what you actually need to do:- Choose an exchange. Pick one that accepts UPI and supports your preferred coins. WazirX, ZebPay, and CoinDCX are the top three for beginners.
- Sign up and verify your identity. You’ll need your PAN card and Aadhaar number. Most platforms require a photo of you holding your PAN card with your face clearly visible. This takes 10-20 minutes.
- Link your bank account or UPI app. UPI is the fastest way. Apps like PhonePe, Google Pay, or Paytm work directly with exchanges. Bank transfers take 1-2 days.
- Deposit rupees. Minimums vary: WazirX lets you start with ₹100. ZebPay and CoinDCX also accept ₹100. Binance India requires ₹500 via bank transfer.
- Buy crypto. Search for Bitcoin, Ethereum, or any coin you want. Enter the amount in rupees, confirm, and it lands in your wallet within seconds if using UPI.
That’s it. No complicated wallets, no private keys to manage-yet. You can always move your crypto to a hardware wallet later.
Top Exchanges for Buying Crypto in India (2025)
Not all exchanges are equal. Here’s what matters in 2025:| Exchange | Minimum Deposit | Payment Methods | Trading Fees | TDS Compliance | Best For |
|---|---|---|---|---|---|
| WazirX | ₹100 | UPI (instant), Bank Transfer | Flat 0.20% | Yes | Beginners, UPI users |
| ZebPay | ₹100 | UPI, Bank Transfer | 0.15%-0.50% (volume-based) | Yes | Mobile users, clean UI |
| CoinDCX | ₹100 | UPI, Bank Transfer | 0.10%-0.40% | Yes | Traders wanting low fees |
| Binance India | ₹500 (bank) | Bank Transfer only | 0.10%-0.60% | No | Advanced users, wide coin selection |
| Kraken | ₹2,000 | Bank Transfer only | 0.00%-0.16% | No | High-volume traders, low fees |
WazirX is the go-to for most people. Why? Instant UPI deposits, ₹100 minimum, and built-in tax reporting. Binance offers more coins-but if you’re not tracking TDS manually, you’ll mess up your taxes. Kraken has the lowest fees, but no UPI means you’re stuck waiting 24-48 hours for funds. For most, speed and simplicity win.
Understanding the 30% Tax + 1% TDS
This is where people get tripped up. You’re not taxed when you buy crypto. You’re taxed when you sell it for a profit. But here’s the catch: the government now takes 1% upfront on every transaction-whether you’re buying or selling. That’s TDS. It’s automatically deducted and sent to the government. You don’t pay it separately.For example: You buy ₹10,000 worth of Bitcoin. ₹100 is taken as TDS. Later, you sell it for ₹12,000. Your profit is ₹2,000. You owe 30% tax on that-₹600. But you already paid ₹100 as TDS. So you pay ₹500 more when you file your taxes. If you sold for less than you bought, you get the TDS back as a refund.
Exchanges like WazirX, ZebPay, and CoinDCX now give you monthly tax reports. Download them. Keep them. Use them when filing your ITR. If you use Binance or Kraken, you’re on your own. You must track every transaction manually. One missed trade can mean a big tax bill later.
Security: Don’t Leave Your Crypto on Exchanges
Exchanges are convenient, but they’re not safe long-term. In 2024, ZebPay’s hot wallet was breached. ₹18.7 crore vanished. That’s not rare. Cyble’s 2025 report found 217 crypto thefts in India totaling ₹9.3 crore. Most happened because users reused passwords or didn’t enable 2FA.Do this right away:
- Enable two-factor authentication (2FA) using Google Authenticator-never SMS.
- Set withdrawal whitelists. Only allow transfers to addresses you’ve pre-approved.
- After buying, move large amounts to a hardware wallet. Ledger Nano S+ costs ₹11,999. It’s worth it.
Only keep what you plan to trade in the next few days on the exchange. The rest? Move it off. Seriously.
Who’s Buying Crypto in India-and Why?
It’s not just speculators anymore. A KPMG-Blockchain Council survey from September 2025 shows:- 67% of users are under 34.
- 31% are students.
- 42% of startups now accept crypto payments.
People are using crypto for:
- Remittances: Sending money abroad costs 5-8% via banks. Crypto can cost under 1%.
- Inflation hedge: With India’s inflation at 6.8%, some see Bitcoin as digital gold.
- Global access: Crypto lets you invest in DeFi, NFTs, and tokens not available on Indian stock markets.
Over 15 million Indians now hold crypto. That’s more than the population of New Zealand. And it’s growing fast. BCG predicts 25 million users by 2027-if the government doesn’t add more restrictions.
What’s Coming Next? CBDC and Regulatory Uncertainty
On November 1, 2025, India launched Phase 3 of its Digital Rupee (e₹-R), a central bank digital currency. It’s being tested by 10 banks and 1 million users. This isn’t crypto-it’s the government’s version of digital cash. But it’s a signal: the RBI is serious about controlling digital money.There’s also a proposed Crypto Asset Regulation Bill stuck in Parliament since February 2023. It could bring stricter rules, licensing, or even bans on certain coins. No one knows what it will say. But one thing’s clear: exchanges that comply with TDS and KYC are staying open. Those that don’t-like Coinbase-got shut down in 2023.
For now, the door is open. But it might not stay that way.
Real User Stories: What Works and What Doesn’t
A Reddit user, u/DesiCryptoTrader, bought ₹500 of Bitcoin via UPI on WazirX in 12 seconds. But when funds didn’t show up, he waited 72 hours for support. That’s the trade-off: speed vs. service. A YouTube creator, CryptoGuruIN, started with ₹100 a day in 2023. Now he has ₹2.8 lakh. He didn’t chase pumps. He bought small amounts weekly. Consistency beat timing. Another user, CryptoNewbieIN on Trustpilot, loves ZebPay’s app-but hates the 0.5% fee on small trades. “I buy ₹1,000 weekly. That’s ₹5 gone every time. It adds up.” And then there’s the Binance user who forgot to track TDS. He sold ₹1.2 lakh in crypto in 2024. He thought he owed nothing. The tax notice came in April 2025: ₹38,000 owed. He didn’t file. Now he’s under investigation.Learn from them. Don’t be the one who gets caught.
Final Tips: What No One Tells You
- Use multiple UPI apps if you hit daily limits. Many users split ₹10,000 across PhonePe, Google Pay, and Paytm.
- Never share your 2FA code. Ever. Even if someone claims to be from support.
- Check your exchange’s help center weekly. WazirX updates its guides every 3-4 days. Binance India’s last update was March 2024.
- Start small. ₹100 is enough. You don’t need to go all-in.
- Keep records. Use Koinly or CoinTracker to auto-sync your trades and generate tax reports.
Buying crypto in India isn’t about getting rich quick. It’s about learning a new financial tool in a country where the rules are still being written. Do it smart. Do it legal. Do it slow.
Can I buy Bitcoin with UPI in India?
Yes. All major Indian exchanges-WazirX, ZebPay, CoinDCX-support UPI for buying Bitcoin and other cryptocurrencies. UPI transfers are instant, usually under 15 seconds. You can start with as little as ₹100.
Do I need to pay tax if I only buy crypto and never sell?
No. You only pay tax when you sell crypto for a profit. However, every time you buy or sell, 1% TDS is automatically deducted. If you never sell, you won’t owe the 30% capital gains tax, but you still paid TDS on your purchases. You can claim that TDS as a credit when you eventually sell.
Which exchange is safest for beginners in India?
WazirX is the safest for beginners. It’s compliant with all Indian tax rules, offers UPI deposits, has a ₹100 minimum, and provides free tax reports. It also uses cold storage for 95% of assets and requires 2FA. While no exchange is 100% hack-proof, WazirX has the strongest track record of compliance and user protection.
Why did Coinbase stop operating in India?
Coinbase shut down its Indian operations in June 2023 after failing to meet regulatory requirements for Tax Deducted at Source (TDS) compliance under Section 194S. Indian regulators required all exchanges to automatically deduct 1% TDS on every transaction. Coinbase chose not to implement this, leading to pressure from SEBI and the Enforcement Directorate under PMLA rules.
Should I use a hardware wallet for my crypto in India?
If you’re holding more than ₹50,000 for more than a few weeks, yes. Most Indian users leave crypto on exchanges, but that’s risky. Hardware wallets like Ledger Nano S+ store your private keys offline. Even if an exchange gets hacked, your coins are safe. The ₹11,999 cost is a small price for security.
Is crypto a good investment in India right now?
It’s not a guaranteed investment-it’s a high-risk, high-reward asset. But for many Indians, it’s a tool for financial inclusion. With inflation at 6.8% and traditional savings accounts paying less than 4%, crypto offers an alternative. The key is to invest small, regularly, and never more than you can afford to lose. It’s not about timing the market-it’s about building exposure over time.
Next Steps: What to Do After Buying Your First Crypto
Once you’ve bought your first ₹100 of Bitcoin or Ethereum:- Enable 2FA and withdrawal whitelisting immediately.
- Download your monthly tax report from your exchange.
- Set a reminder to buy ₹100-₹500 every week. Dollar-cost averaging beats guessing market peaks.
- Join r/IndianCryptoCurrency on Reddit. Ask questions. Learn from others’ mistakes.
- After 6 months, consider moving 50% of your holdings to a hardware wallet.
Crypto isn’t a get-rich-quick scheme. In India, it’s a financial literacy experiment. Do it right, and you’ll understand money better than most people your age. Do it wrong, and you’ll lose it-and possibly get taxed for it.
Laura Lauwereins
November 16, 2025 AT 03:42So you’re telling me I can buy Bitcoin with UPI like I’m ordering chai? Wild.
Meanwhile in the US, my bank still thinks crypto is a pyramid scheme.
India’s just out here rewriting finance like it’s a TikTok trend.
Carol Rice
November 18, 2025 AT 00:28STOP. LET ME TELL YOU SOMETHING!?!?!
You think 30% tax is bad? TRY 40% IN CALIFORNIA WITH A 13% STATE TAX ON TOP OF FEDERAL!!!
And don’t even get me started on how Binance India’s ‘no TDS’ is just a trap for tax zombies!
WazirX? YES. They’re the only ones who don’t make you feel like a criminal for wanting to own digital gold.
Also-HARDWARE WALLET. NOW. Not tomorrow. Not when you have ‘a lot.’ NOW.
₹11,999? That’s less than your monthly Netflix subscription. You’re literally paying to be poor.
And yes-I’m screaming into the void because I’ve seen too many people lose everything because they trusted an exchange like it was a bank.
Exchanges are hotels. Your keys? Your house.
Move it. Move it. MOVE IT.
Also-use Koinly. I don’t care if you’re buying ₹100 a week. Track it.
And if you think ‘I’ll just remember’-you’re already the guy in the tax notice.
Stop being cute. Start being smart.
And yes-I’m a woman. And I’m not here to be polite. I’m here to save your money.
And no-I’m not mad. I’m just disappointed in humanity.
Go. Do it right. I believe in you.