How will transaction fees and losses impact crypto taxes?
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If crypto gains are taxed at 30%, should we also worry about how losses, transaction fees, and staking income are taxed? These rules can affect the total tax bill, not just the flat rate.
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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.