Calculate your cryptocurrency profit, loss, and ROI
Crypto profit is calculated by finding the difference between your sell value and buy value, minus trading fees. ROI (Return on Investment) shows the percentage gain or loss relative to your initial investment.
Bought 0.5 BTC at ₹42,00,000 each, sold at ₹58,00,000 each
Cost = 0.5 × 42,00,000 = ₹21,00,000
Proceeds = 0.5 × 58,00,000 = ₹29,00,000
Gain = ₹8,00,000
Tax at 30 % = ₹2,40,000
Cess at 4 % of tax = ₹9,600
TDS already deducted at 1 % of ₹29,00,000 = ₹29,000
Total tax ₹2,49,600, of which ₹29,000 is already paid as TDS — ₹2,20,600 left to pay. Net in hand: ₹5,50,400.
| Question | Position under Section 115BBH |
|---|---|
| Rate | Flat 30 % plus 4 % cess, regardless of your slab |
| Holding period | Irrelevant — there is no long-term concession |
| Deductions allowed | Cost of acquisition only |
| Exchange fees, gas, brokerage | Not deductible |
| Loss set-off against crypto gains | Not allowed |
| Loss set-off against salary or capital gains | Not allowed |
| Carry forward of losses | Not allowed |
| TDS | 1 % under Section 194S on the transfer value |
| Crypto-to-crypto swaps | A taxable transfer — each leg is an event |
| Airdrops, staking rewards, mining | Taxable on receipt, then again on eventual sale |
| Gifts of VDA | Taxable in the recipient’s hands beyond the ₹50,000 threshold |
| Reporting | Schedule VDA in the income tax return |
Because fees are not deductible and losses cannot be offset, frequent trading is unusually expensive under this regime. A round trip costing 0.4 % in fees on a position that rises 1 % leaves a 0.6 % economic gain but is taxed on close to the full 1 % move. Work out the after-tax, after-fee number before treating a small move as a profit — the tool above does the arithmetic, but the deductibility rules are the part people get wrong.
Gains on virtual digital assets are taxed at a flat 30 % plus 4 % cess under Section 115BBH, with no benefit for long holding periods. A 1 % TDS applies to the transfer under Section 194S, and gains must be reported in Schedule VDA of the income tax return.
No. Section 115BBH does not permit loss set-off even against other virtual digital asset gains, and losses cannot be carried forward to future years. Each profitable transaction is taxed on its own.
No. The only deduction allowed is the cost of acquisition. Trading fees, gas fees, withdrawal charges and GST on brokerage cannot be subtracted from the taxable gain.
Yes. A crypto-to-crypto swap is treated as a transfer of the coin you give up, so the gain on that leg is taxable at 30 % and TDS applies, even though no rupees changed hands.
Subtract the total buy cost from the total sell proceeds and then subtract the fees you actually paid to get the economic profit. For tax, recompute using only the cost of acquisition, because fees are not deductible under the Indian VDA rules.
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