DeFi & Yield

How is DeFi yield taxed in India?

In India, income from DeFi yield is generally treated under the virtual digital asset rules, where gains on transfer are taxed at a flat 30 percent plus applicable surcharge and cess, with no deduction other than cost of acquisition. A 1 percent TDS may also apply on certain transfers. Reward tokens received as yield can be taxable when received and again on later disposal. For example, harvesting a reward token may be taxed on its value at receipt. Treatment can vary by structure, so consult a qualified tax professional for your situation.

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.