Indian Compliance & Tax

Can I deduct the cost of acquisition when computing crypto tax?

Yes, when computing tax on a Virtual Digital Asset sale in India you can deduct the cost of acquisition, meaning the price you originally paid to buy the asset. This is the only deduction the law allows against crypto gains; expenses like exchange fees, internet costs, or interest on borrowed funds cannot be subtracted. For example, if you bought a coin for 80,000 rupees and sold it for 100,000 rupees, the 30 percent tax applies to the 20,000 rupee gain. Losses from one crypto also cannot be set off against gains from another.

This is general information, not tax advice. Tax rules change and depend on your individual circumstances — verify the current rules or consult a qualified tax professional before acting.