Bitcoin in India: rules, tax and how it's priced
In India bitcoin is usually quoted as the rupee price of one whole BTC, often written in lakh (for example ₹1 lakh = ₹1,00,000). Most buyers purchase a small fraction of a coin rather than a whole one. The figures on this page are the international BTC/USD price converted to INR at today's exchange rate. They are shown before exchange fees, spreads, the 1% TDS and any local premium, so the price you see on an Indian app can be slightly different.
Is bitcoin legal in India?
Owning and trading bitcoin is legal in India, but bitcoin is not legal tender and there is no dedicated crypto law. In March 2020 the Supreme Court struck down the Reserve Bank of India's 2018 ban on banks serving crypto businesses. Since March 2023, crypto exchanges and wallet providers have come under the Prevention of Money Laundering Act. Any platform serving Indian users, whether it is based in India or abroad, must register with the Financial Intelligence Unit (FIU-IND) as a reporting entity. FIU-IND enforces this actively: on 9 September 2026 it served notices on 15 unregistered offshore platforms and ordered their apps and websites to be blocked. The RBI is still sceptical of crypto, and the government warns that crypto products are unregulated and risky.
How crypto is taxed in India
Gains on "virtual digital assets" (VDAs), which include bitcoin, are taxed at a flat 30% plus surcharge and cess. The rate is the same however long you hold. The only deduction allowed is the cost of acquisition. Losses cannot be set off against any other income or carried forward. A 1% TDS is also deducted on transfers once your sales pass ₹10,000 in a financial year (₹50,000 for specified persons). Exchanges usually deduct it for you, and you can claim it against your final tax bill. From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act. The TDS rule moved from section 194S to section 393(1), and Budget 2026 left the 30% rate and the 1% TDS unchanged.
Buying bitcoin in India
Most Indians buy through FIU-registered exchanges, funding their account with rupees by bank transfer. On these platforms tax is deducted automatically and transactions are reported. Offshore apps that are not registered with FIU-IND risk being blocked, as several were in 2026. Peer-to-peer (P2P) deals are legal, but in a P2P trade the buyer is responsible for deducting the 1% TDS. Because the 1% TDS applies to every sale, frequent small trades are expensive in India. Rupee prices on local apps can therefore differ from the converted international price shown here, so compare the final amount after fees before you buy.
Reporting rules from 2026
Indian authorities can see more and more crypto activity. Under section 509 of the Income-tax Act, 2025, prescribed reporting entities such as crypto platforms must file statements of their users' crypto-asset transactions. Since 1 April 2026, failing to file brings a penalty of ₹200 per day, and inaccurate information can cost up to ₹50,000. Budget 2026 also reduced the maximum prison term for TDS defaults from seven years to two. If you hold crypto, keep records of every purchase price and every TDS deduction. Declare VDA gains in your income tax return even if you made a net loss.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.