Trading & Technical Analysis

Is crypto arbitrage profit taxed in India?

Yes, profit from crypto arbitrage in India is taxable as income from the transfer of a virtual digital asset, taxed at a flat 30 percent under the rules introduced in 2022, plus applicable surcharge and cess. A 1 percent TDS also applies on transfers above the prescribed threshold. For example, a 10,000 rupee arbitrage gain would attract 3,000 rupees in tax before cess, and losses generally cannot be set off against this income. Tax treatment can change and individual situations vary, so confirm the current position with a qualified tax professional before relying on these figures.

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.