OpenRate Research
Everything we've learned about P2P crypto in India
108 articles on tax, regulation, exchange specifics, payment rails, arbitrage, and how to avoid the scams that show up on every UPI receipt screenshot.
1% TDS on crypto in India: how it works and how to claim refund
Section 194S deducts 1% TDS on every crypto trade above ₹50,000/year. Recoverable via ITR if your tax liability is lower than total TDS deducted.
How to fill Schedule VDA on your ITR for crypto P2P trades
Schedule VDA reports every crypto transfer for the financial year. Aggregate by asset and month, reconcile against AIS, file ITR-2 or ITR-3.
Is P2P trading taxed differently from spot trading?
No. Section 115BBH applies the same 30% to gains regardless of execution venue. P2P trades are full taxable events.
Can I offset crypto losses against other income in India?
No. Section 115BBH(2) forbids offsetting crypto losses against any other income, against other crypto gains, or carrying losses forward to future years.
GST on crypto in India: 18% on exchange fees (July 2025 update)
Since July 2025, 18% GST applies to crypto exchange fees and wallet services. P2P retail trade-value GST has not been actively enforced yet but is contested.
Form 26AS and AIS — what crypto data the tax department already has
FIU-registered exchanges report your trades to the tax department automatically. Your AIS pre-fills before you ever click 'file ITR'.
How to calculate tax on a single P2P trade
A worked example: buy USDT at ₹91.20, sell at ₹92.40, ₹1 lakh trade. Here's the exact tax math, line by line.
Receiving crypto as payment — tax treatment
Freelancers paid in USDT face two taxable events: receipt as business income (slab rate) and any subsequent sale as VDA (30%).
Do I pay tax if I only hold USDT and never sell?
No. Holding is untaxed under 115BBH — only transfers (sale, swap, gift, payment) trigger tax. But annual reporting may still apply.