Cryptocurrency remains one of the most controversial investment topics in India. After years of regulatory ambiguity, the government took a decisive stance in the Union Budget 2022, imposing a flat 30% tax on crypto gains. Here is what every Indian crypto investor needs to know in 2026.
Is Cryptocurrency Legal in India?
Yes, cryptocurrency trading and holding is legal in India. Contrary to early fears, the government has not banned crypto. Instead, it has regulated it – imposing taxes and mandating exchange registration with the Financial Intelligence Unit (FIU-IND) under PMLA (Prevention of Money Laundering Act).
Tax Rules for Crypto (2026)
- Flat 30% tax on all profits from crypto sales, including NFTs and digital assets – regardless of holding period.
- 1% TDS deducted at source by exchanges on crypto sale transactions above ₹50,000 (₹10,000 for specified persons). This is a prepaid tax, not additional.
- No offset of crypto losses against other income or even against gains from other crypto assets – each transaction is taxed independently.
- No deduction except the cost of acquisition.
Which Exchanges Are Safe for Indian Users?
- CoinDCX: India’s largest by volume. FIU-IND registered. Supports INR deposits/withdrawals.
- WazirX: Pioneer exchange, now under new ownership post-2024 hack. Improved security.
- Mudrex: Focus on algorithm-based crypto baskets. Good for passive crypto exposure.
Investing Responsibly in Crypto
Limit crypto to 2–5% of your overall investment portfolio. Never invest borrowed money. Secure your assets: use hardware wallets for large holdings and enable 2FA on all exchanges.
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