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Is Crypto Still Worth Buying After 30% Tax? The Honest Answer
- Ripradaman R
- Dec 24, 2025
- 2 min read
Introduction
India’s 30% tax on crypto gains changed everything.
Investors now question whether crypto still makes financial sense.
This article breaks down the reality—numbers, logic, and outcomes.
No hype. Just facts.
Understanding India’s 30% Crypto Tax Rule
India taxes all crypto profits as Virtual Digital Assets (VDAs).
Key points:
Flat 30% tax on profits
No set-off of losses allowed
1% TDS on every transaction
Applies to trading, investing, gifting (receiver side)
This structure favors the government, not frequent traders.
What the 30% Tax Really Does to Your Returns
Tax impact depends on your return profile.
Example:
₹1,00,000 invested
₹1,50,000 selling value
₹50,000 profit → ₹15,000 tax
Net profit: ₹35,000 (before TDS impact)
Crypto still outperforms many assets only if returns are high.
Short-Term Trading vs Long-Term Holding
Tax rules hit traders harder than investors.
Short-term trading:
Frequent 1% TDS blocks capital
No loss adjustment
Lower compounding power
Long-term holding:
Fewer transactions
TDS impact minimized
Better suited under current tax laws
Crypto is no longer trader-friendly in India
Is Crypto Still Better Than Stocks or Mutual Funds?
A simple comparison:
Stocks/MFs:
Long-term tax: 10–15%
Loss set-off allowed
Crypto:
Flat 30% tax
No deductions or exemptions
Crypto only makes sense if:
You expect asymmetric returns
You accept high volatility
Allocation is limited
Also Read:
Who Should Still Consider Buying Crypto?
Crypto still fits certain profiles:
Long-term believers in blockchain adoption
Investors allocating 5–10% of portfolio
Those investing surplus capital
Users focused on Bitcoin and large-cap tokens
It is not suitable for:
Daily traders
Tax-sensitive investors
Capital preservation strategies
Interesting Read:
Regulation Risk vs Opportunity
India hasn’t banned crypto—but hasn’t embraced it either.
Current signals:
Legal but heavily taxed
No investor protection framework
Regulatory uncertainty remains
Crypto is a high-risk, high-optional-return asset, not a core investment.
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Conclusion
Crypto is not dead after the 30% tax.
But it is no longer easy money.
Only disciplined, long-term investors with clear expectations should participate.
Allocation not emotion decides success.
FAQ
Q1. Is crypto legal in India after the 30% tax?
Yes. Crypto is legal but regulated through taxation.
Q2. Can I offset crypto losses against profits?
No. Loss set-off is not allowed under current rules.
Q3. Is 1% TDS refundable?
It can be adjusted while filing returns but impacts liquidity.
Q4. Is long-term crypto investing still viable?
Yes, if allocation is small and expectations are realistic.
Q5. Should beginners enter crypto now?
Only with education, limited capital, and long-term intent.
Citations
Ministry of Finance, Government of India
Income Tax Department of India
Reserve Bank of India Statements
CoinDesk Research
Chainalysis Industry Reports
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