Crypto rules in India in 2026: tax, TDS and registration explained
India does not have a single law for crypto, but there are clear rules on tax and reporting. This is a summary of what a May 2026 CoinSwitch article describes. Because CoinSwitch is a crypto exchange and not a government source, check official notifications for the latest rules.
Tax
- Gains from crypto, which the law calls virtual digital assets (VDAs), are taxed at 30%.
- A 1% TDS (tax deducted at source) applies to transactions.
- The article says the 30% rate was unchanged in the 2026 budget.
Reporting and registration
- Crypto exchanges are treated as reporting entities under India's money-laundering law (PMLA) and must register with FIU-IND.
- They must keep KYC records and send transaction reports.
- The article says FIU-IND issued updated anti-money-laundering guidelines in 2026 for exchanges, wallets and web3 services.
Regulators
- SEBI's role is described as oversight of exchanges, and the RBI looks at wider risks such as cross-border flows and stablecoins.
What it means for you
Use exchanges that follow KYC rules, keep records of every trade for tax, and report your gains. If you plan to launch your own token or run a crypto business, take legal advice first.
This article is for information and is not tax or legal advice.