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