Under section 115BBH of the Income Tax Act (effective FY 2022-23 onwards), gains from the transfer of any Virtual Digital Asset (VDA) — crypto, NFTs, etc. — are taxed at a flat 30% regardless of your income slab or holding period. No deduction other than the cost of acquisition is allowed, so gas fees, exchange brokerage, and mining costs are NOT deductible.

Section 194S requires the buyer (or the exchange) to deduct 1% TDS on the gross sale value when the transaction crosses ₹50,000 in a year (₹10,000 for non-specified persons). It applies to every sell/swap, not just net gains. Indian exchanges deduct it automatically; the TDS appears in your Form 26AS and can be claimed back when filing your ITR.

No. The Income Tax Act explicitly disallows set-off of crypto losses — neither against gains in another VDA nor against any other head of income (salary, business, property). Crypto losses also cannot be carried forward to subsequent years. This is one of the harshest features of the regime.

Yes. Swapping BTC for ETH is treated as a transfer and triggers tax on the gain measured in INR at the time of the swap. Both the disposal (BTC) and acquisition (ETH) need INR values — exchange rates at the moment of swap are used. This is why detailed transaction records are essential.

Crypto gains go in Schedule VDA of ITR-2 (capital gains) or ITR-3 (business income). You must list each transaction with date of acquisition, date of transfer, cost in INR, and sale consideration. Gifts of crypto exceeding ₹50,000 are also reportable as income for the receiver.

Yes — 1% TDS is on the gross sale value, not on the gain. Even if you sell at a loss, the TDS is still deducted. You can claim it back as a tax credit when filing your ITR, so it is not lost — but it does affect your cash flow until you file.