Tax filing for crypto investors: All you need to know

VDA transactions, including sales, are subject to a 30% capital gains tax in India. A capital loss in one VDA can’t be offset against profit in another– essentially, you pay 30% capital gains on profitable assets of that financial year. Additionally, a 1% Tax Deducted at Source (TDS) is also charged on VDA sale/transfer between assets. These are deposited to your PAN number by compliant Indian exchanges which you can use to reduce your tax liability or get a refund via your ITR filing.