Although tax laws are clear, India's framework for regulating cryptocurrency is still developing. Gains from trading or selling cryptocurrencies are subject to a flat 30% tax under existing legislation, which classifies them as virtual digital assets.

"Is cryptocurrency taxed in India?" is a question that many investors ask. The answer is "yes," with an extra 1% TDS paid on transfers beyond the threshold. The majority of deductions are prohibited, and losses cannot be offset.