Crypto Taxes

Reporting small crypto losses can be frustrating, especially when it comes to small gains. However, avoiding them might result in bigger tax problems later. It seems we need simpler tools or clearer rules from the IRS instead of tracking every penny ourselves.

Current regulations on cryptocurrency taxation are exceptionally strict. You pay a flat 30% tax plus a 4% cess on any profits from selling or trading, and you cannot use losses to offset your gains. Additionally, a 1% TDS is deducted from every transfer, which the government uses to track your trades.

Remember to include the 18% GST on exchange fees and report everything in Schedule VDA of your ITR to avoid penalties.

Absolutely — you're spot on to think beyond just the flat 30% on gains. In India:

Losses can’t be set off against gains or carried forward, so even if you lose money, it won’t reduce your crypto tax bill. Transaction fees, gas, or exchange charges are not deductible when calculating taxable profit. Staking, mining, and airdrop rewards are taxed as income (at your slab when received), and then 30% again on any later sale gains.

So yes — fees, how losses are treated, and the type of income all matter and can meaningfully change your total tax liability, not just the headline 30%. Keeping good records is key.

Yes, the Indian tax rules system applies to you. You are earning by selling the game item for USDT, which is considered a transfer of a virtual digital asset (VDA). So any profit from selling the games will be taxed. A 30% (crypto tax) tax is applied on capital gains a 1% TDS is applied under VDA rules.

Even without regular income, buying anything with cryptocurrency is considered a taxable event. You have to pay 30% tax on any gains made from crypto transactions.

Hii,
I am a senior citizen. In the old tax regime, there were special advantages in tax rates for senior citizens. Does the new tax regime allow any special exemption for interest earned by senior citizens from savings or fixed deposits? Are deductions on medical insurance premiums still available for senior citizens in the new tax regime?

The Indian Income Tax Department clearly states that you must pay a 30% tax on cryptocurrency profits. There is no other way to avoid this tax.