DeFi & Yield

Does the 30% crypto tax apply to DeFi staking and yield in India?

In India, the 30% flat tax under Section 115BBH applies to gains from transferring virtual digital assets, and DeFi staking or yield rewards are generally treated as VDA income that falls under this regime when you dispose of the tokens. The rewards are often taxed first as income at receipt (at fair market value), then the 30% applies to any gain when you later sell. For example, staking rewards worth 10,000 rupees received and later sold for 14,000 attract tax on both legs. Tax treatment of DeFi remains an evolving area, so confirm specifics with a qualified tax professional.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.