Yes, cryptocurrency gains are taxable in India. Here’s a breakdown of how it works:

Tax Classification:

• Cryptocurrencies are classified as Virtual Digital Assets (VDAs) in India.

Tax Rate on Gains:

• A flat 30% tax is applied to profits earned from selling, trading, or swapping cryptocurrencies. This applies irrespective of whether the gains are considered short-term or long-term. There’s an additional 4% cess on this 30% tax.

Tax Deducted at Source (TDS):

• A 1% TDS is deducted at source on the transfer of crypto assets exceeding ₹50,000 (or even ₹10,000 in certain cases) within the same financial year.

Other taxable scenarios:

• Receiving crypto assets as gifts exceeding INR 50K attracts a 30% crypto tax.
• Airdrops that categorize under gifts exceeding INR 50K are also taxable under India’s 30% crypto tax.

Important Points:

• There are no provisions for reduced tax rates or deductions on crypto gains under Section 115BBH.
• This crypto tax applies to all investors, including private individuals and businesses.

Recommendations:

• Keep detailed records of your crypto transactions for tax filing purposes.
• Consult a tax advisor for personalized guidance on your specific situation.

For further details, you can refer to resources from Indian tax websites or consult a tax professional.