India Taxes Crypto at 30% — But Still Won't Call It Legal

On July 2, 2026, the Reserve Bank of India (RBI) told a parliamentary finance committee that cryptocurrency should not be legalized — the regulator still refuses to recognize it as a legitimate asset class, Business Standard reports. The hearing was part of a consultation process — no new law was passed, so nothing has formally changed yet.

Meanwhile, crypto in India sits in a genuinely contradictory spot: buying, holding, and selling it is legal, but it has no status as official currency — and the government has been steadily collecting taxes on it regardless, Indian Pay Calculator notes. The tax rate on crypto profits is 30%, plus a 1% TDS withheld on every transfer — figures that haven't changed in years.

Since April 1, 2026, the pressure on exchanges has only grown: failing to file reports carries a penalty of ₹200 a day, and submitting incorrect data costs a flat ₹50,000, Nadcab explains.

What this means in practice: the Indian government treats crypto like a real, recognized source of income — taxing it, demanding reports, fining violations — while deliberately withholding any formal legal status. For an ordinary user, that means paying taxes is mandatory, but counting on the legal protections of a recognized asset is not.

This article is for informational purposes only and is not tax or financial advice.