EaseValueIncome from transferring crypto and other virtual digital assets (VDAs) is taxed at a flat 30% under the special-rate provisions of Chapter XIII of the Income-tax Act, 2025. The rules are deliberately strict: no deduction is allowed except the cost of acquisition, losses cannot be set off against other income or carried forward, and a 1% TDS applies on transfers. VDAs — crypto tokens and NFTs — are defined in Section 2(111).
- Flat 30% (plus surcharge and cess) on income from transfer of any VDA.
- Only cost of acquisition is deductible — no expenses, no indexation.
- No loss set-off or carry-forward.
- 1% TDS on transfers above the threshold.
Reviewer note: insert the exact special-rate section number (Chapter XIII) and the VDA TDS section number, plus the TDS threshold, before publishing.