Crypto Consulting Services

Expert Advisory on Cryptocurrency Investments, Tax Obligations, and Regulatory Compliance in India

Cryptocurrency — including Bitcoin, Ethereum, and other virtual digital assets — has become a significant investment class in India. However, the regulatory and tax framework around crypto is complex and evolving. Since the Finance Act 2022, virtual digital assets (VDAs) are subject to a flat 30% tax on gains, 1% TDS on transfers, and no set-off or carry-forward of losses — making professional crypto advisory essential for every serious investor.

Our crypto consulting services cover the complete spectrum — from understanding your tax position and planning transactions efficiently, to ensuring TDS compliance, filing correct ITRs, and responding to income tax notices related to crypto transactions. This connects with our crypto tax filing, TDS on crypto P2P, and income tax e-filing services.

Our Crypto Consulting Services Services

VDA Tax Planning

Advising on the tax implications of buying, selling, swapping, staking, mining, and gifting cryptocurrency — and structuring transactions to minimise tax within the law.

Portfolio Tax Review

Reviewing the taxpayer's full crypto portfolio across all exchanges and wallets — computing unrealised and realised gains and advising on tax-efficient timing of disposals.

Exchange Transaction Analysis

Analysing transaction histories from Indian and foreign exchanges (WazirX, CoinDCX, Binance, Coinbase) and computing accurate gains for each transaction.

Crypto Notice Advisory

Advising on income tax notices related to crypto transactions — particularly where exchanges have reported transaction data to the department through the SFT or AIS.

DeFi & NFT Tax Advisory

Advising on the tax treatment of DeFi income (staking rewards, liquidity mining), NFT sales, airdrops, and hard forks — areas where the law is still developing.

FEMA Compliance for Foreign Exchanges

Advising on FEMA implications of holding crypto on foreign exchanges — including reporting obligations for Indian residents holding assets on overseas platforms.

Key Facts

Crypto gains are taxed at a flat 30% rate under Section 115BBH — no slab rate benefit, no basic exemption offset
No set-off of crypto losses against any other income — not even against gains from other VDAs
No carry-forward of crypto losses to future years
1% TDS is deducted by exchanges under Section 194S on every crypto transfer above ₹50,000 (₹10,000 for specified persons)
Cost of acquisition is the only deduction permitted — no other expenses (brokerage, mining costs) are deductible
Gifting cryptocurrency is taxable in the recipient's hands under Section 56(2)(x) at fair market value
AIS now includes crypto transaction data reported by exchanges — mismatches trigger notices

Frequently Asked Questions

What is a Virtual Digital Asset (VDA) under Indian tax law?

Under Section 2(47A) of the Income Tax Act, a VDA includes any information, code, number, or token generated through cryptographic means — including cryptocurrency (Bitcoin, Ethereum), NFTs, and other digital assets notified by the government. Traditional digital representations of fiat currency (UPI, NEFT) and foreign currency are excluded. The definition is broad enough to cover most crypto tokens and digital collectibles currently in the market.

Is crypto-to-crypto exchange (swap) taxable in India?

Yes. Every crypto-to-crypto swap — exchanging Bitcoin for Ethereum, for example — is treated as a transfer of a VDA and is taxable at 30% on the gain at the time of the swap. The fair market value of the VDA received is treated as the consideration for the VDA given up. This means even if no fiat currency is received, the swap triggers a taxable event and a TDS obligation on the platform facilitating the swap.

Are staking rewards and mining income taxable?

Yes. Staking rewards and mining income are treated as income from VDAs and taxed at 30% under Section 115BBH. The fair market value of the tokens received as staking reward or mining output on the date of receipt is the taxable income. When those tokens are subsequently sold, the gain (sale price minus the FMV at receipt) is taxed again — meaning staking/mining income faces a double-taxation scenario under the current law.

What is the TDS rate on crypto transactions and who deducts it?

Section 194S requires deduction of 1% TDS on transfer of VDAs by the exchange or platform facilitating the transfer — if the consideration exceeds ₹50,000 in a financial year (₹10,000 for individuals/HUFs not subject to tax audit). For P2P transactions where no exchange is involved, the buyer is responsible for deducting TDS under Section 194S. TDS deducted reflects as a credit in the seller's Form 26AS and AIS.

What happens if crypto gains are not reported in the ITR?

The income tax department receives transaction data from Indian exchanges via SFT and AIS. Unreported crypto income matching AIS data triggers scrutiny notices under Section 143(2) or information notices under Section 133(6). Unexplained crypto income can be assessed under Section 68 or 69 as unexplained cash credit or investment — attracting tax at 60% plus surcharge plus penalty of 10% to 200% of the tax evaded under Section 271AAC.

Crypto Tax — Plan It Right, Report It Right

Expert advisory on VDA taxation, portfolio review, TDS compliance, and crypto notice response.