Bitcoin in India: Legal Status, Tax Rules, What's Allowed

Buying Bitcoin in India is legal. Spending it as money is not. Holding it is taxed only when you sell. Here is the legal status in one page.

• Legal to buy, hold, and sell on Indian FIU-IND registered exchanges.
• Not legal tender — cannot be used to pay rent, salary, or any debt.
• 30% flat tax on profits + cess (Section 115BBH IT Act).
• 1% TDS on every transfer (Section 194S).
• Losses cannot offset other income and cannot be carried forward.
• Foreign exchanges (Binance, KuCoin, OKX) — blocked / risky under PMLA + FEMA.

For complete tax rules, exchange compliance, gift treatment, mining, staking, NFTs, full FAQ:

→ Read the full Cryptocurrency Law guide for India 2026

• Should I file ITR if I only hold Bitcoin? No tax until you sell.
• Can my employer pay me in BTC? No, salary must be INR.
• Can I claim a 2024 BTC loss against my 2026 stock profit? No.
• Is the e-Rupee the same as Bitcoin? No. e-Rupee is RBI's CBDC; BTC is private.

Key sources: Income-tax Act, Section 115BBH · FIU-IND registered exchanges · RBI on Virtual Digital Assets.

Read more:

• Full crypto guide — taxes, exchanges, FIU-IND
• Blog — latest crypto regulation updates

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