Crypto Regulation Timeline India (2013–2026)
Yes, cryptocurrency is legal in India as of 2026. It is not banned — the 2018 RBI banking ban was struck down by the Supreme Court in 2020. Crypto is now a regulated asset class taxed at 30% under Section 115BBH and subject to 1% TDS under Section 194S (effective April 1 and July 1, 2022 respectively).
Last updated: March 21, 2026 · All 16 events from the first RBI caution (2013) to Budget 2026-27.
30%
Flat tax on VDA profits (Sec 115BBH)
1%
TDS on VDA transfers above ₹10,000/year (Sec 194S)
Apr 2022
When crypto taxation began in India
No Ban
RBI ban struck down by Supreme Court (2020)
Complete Regulatory Timeline
All major crypto regulation events in India, from 2013 to 2026.
RBI First Caution on Virtual Currencies
The Reserve Bank of India issued its first public caution regarding virtual currencies, alerting users to potential financial, legal, and security risks. This was a non-binding advisory with no regulatory action.
RBI Reiterates Caution
Following Bitcoin's price surge, the RBI reiterated its earlier caution and warned users, holders, and traders about the risks associated with virtual currencies, including no legal-tender status.
RBI Issues Third Public Warning
The RBI again warned the public about risks of dealing in virtual currencies, noting the absence of any authorised entity regulating crypto and the lack of redress mechanisms for consumers.
RBI Circular Banning Banks from Crypto Services
The RBI issued a circular prohibiting all entities regulated by it — banks, NBFCs, payment operators — from providing services to businesses dealing in virtual currencies. This effectively froze Indian exchanges' banking access and triggered a crisis for the industry.
Supreme Court Strikes Down RBI Ban
In Internet and Mobile Association of India vs Reserve Bank of India, the Supreme Court unanimously struck down the RBI's 2018 banking ban as disproportionate. This landmark ruling restored crypto industry's access to banking services and confirmed that cryptocurrency trading was not illegal in India.
Cryptocurrency and Regulation of Official Digital Currency Bill Proposed
The Government of India circulated a proposed Cryptocurrency and Regulation of Official Digital Currency Bill for parliamentary discussion. Media reports speculated a blanket ban on private cryptocurrencies. The bill was never formally tabled for debate and lapsed.
Crypto Regulation Listed in Parliament Bulletin
The Lok Sabha bulletin for the Winter Session listed the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 for introduction, reigniting speculation about a ban. The bill was again not introduced during the session.
Finance Minister Announces 30% Tax on VDA (Budget 2022-23)
Finance Minister Nirmala Sitharaman announced in the Union Budget 2022-23 that income from Virtual Digital Assets (VDA) — including crypto and NFTs — would be taxed at a flat rate of 30%, with no deductions except cost of acquisition. She also announced 1% TDS on VDA transfers above specified thresholds.
Finance Act 2022 Passed — Section 115BBH and Section 194S
The Finance Act 2022 received Presidential assent, formally inserting Section 115BBH (30% flat tax on VDA income) and Section 194S (1% TDS on VDA transfers) into the Income Tax Act, 1961. This gave legal force to the new crypto tax framework.
Section 115BBH Comes into Effect — 30% Tax on VDA Profits
Section 115BBH became effective from Assessment Year 2023-24 (FY 2022-23 onwards). All gains from crypto, NFTs, and other VDAs are taxed at 30% (plus applicable surcharge and 4% cess). Losses cannot be offset against other income or carried forward.
Section 194S Comes into Effect — 1% TDS on VDA Transfers
Section 194S became operational, mandating 1% TDS deduction on transfers of VDAs above ₹10,000 per year (₹50,000 for specified persons). Indian exchanges began automatically deducting TDS; international exchanges left self-reporting to users.
Budget 2023-24 — No Changes to Crypto Tax
Union Budget 2023-24 did not alter the crypto tax framework. The 30% flat rate under Section 115BBH and 1% TDS under Section 194S remained unchanged, signalling the government's intention to maintain a stable (if high) tax regime rather than a ban.
Budget 2024-25 — No Changes to Crypto Tax
Budget 2024-25 again made no amendments to VDA taxation. India continued to apply 30% tax + 1% TDS. Industry bodies had lobbied for a rate reduction and loss offset provisions, but these were not accepted.
FIU Registers International Crypto Exchanges
The Financial Intelligence Unit (FIU-IND) under the Finance Ministry registered major international exchanges — including Binance, KuCoin, Huobi/HTX, Kraken, Gate.io, Bittrex, Bitstamp, and MEXC — as Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA). This brought international exchanges into India's AML/KYC framework.
Budget 2025-26 — Crypto Tax Rules Unchanged
The Union Budget 2025-26 maintained the existing VDA tax regime. 30% tax under Section 115BBH and 1% TDS under Section 194S continued without modification. The government indicated no near-term plans to alter the crypto tax structure.
Budget 2026-27 — Crypto Tax Rules Unchanged
Budget 2026-27 made no changes to the crypto tax framework. As of the 2025-26 assessment year, the 30% flat tax on VDA profits and 1% TDS on transfers remain in force. India has no crypto ban; the legal position is that crypto is a legal, taxable asset class.
Current Legal Status of Crypto in India (2026)
Legal to Buy, Sell & Hold
No law prohibits owning or trading cryptocurrency. The Supreme Court upheld the right to trade crypto in 2020.
Taxed as VDA at 30%
All profits are taxed at 30% flat (Section 115BBH) with no loss offset. 1% TDS applies on VDA transfers above ₹10,000 a year (Section 194S).
AML/KYC Regulated
Exchanges must comply with PMLA. International exchanges like Binance and KuCoin are registered with FIU-IND since March 2024.
What Is Not Yet Clear
India does not yet have a comprehensive crypto regulatory framework beyond taxation and AML rules. A Cryptocurrency Bill has been proposed twice but never tabled. Crypto has no legal-tender status and the RBI has not issued a formal licensing framework for exchanges. The regulatory landscape may evolve — monitor RBI and MoF announcements.
Frequently Asked Questions
Is crypto legal in India?
Yes, cryptocurrency is legal in India as of 2026. There is no ban on buying, selling, or holding crypto. The government has classified cryptocurrencies as Virtual Digital Assets (VDA) and taxes them at 30% under Section 115BBH of the Income Tax Act.
Is there a crypto ban in India?
No, there is no crypto ban in India. The only regulatory ban — an RBI circular in April 2018 that prohibited banks from servicing crypto businesses — was struck down by the Supreme Court in March 2020 in the Internet and Mobile Association of India vs RBI case. Since then, crypto trading has been legal and accessible through banks.
What is the crypto tax rate in India?
Crypto profits are taxed at a flat 30% rate under Section 115BBH of the Income Tax Act (plus 4% health and education cess, totalling approximately 31.2%). Additionally, 1% TDS applies under Section 194S on VDA transfers once your total crosses ₹10,000 in a financial year (₹50,000 for certain individuals). No deduction is allowed except cost of acquisition, and losses cannot be set off against other income.
When did India start taxing crypto?
India started taxing crypto from April 1, 2022 (Financial Year 2022-23). Section 115BBH was announced in the Union Budget on February 1, 2022, passed via the Finance Act 2022 in March 2022, and became effective from April 1, 2022. TDS under Section 194S came into effect from July 1, 2022.
Can the government ban crypto in India?
Legally, yes — Parliament has the authority to pass legislation restricting or banning crypto. However, as of 2026, no such legislation has been introduced. The government has instead opted for a high-tax regulatory approach. The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 was listed for tabling twice but never introduced. Industry observers consider an outright ban increasingly unlikely given India's FIU registration of international exchanges in 2024.
Calculate Your Crypto Tax Under Section 115BBH
India's crypto tax rules are clear: 30% flat tax, no loss offset, 1% TDS. Upload your exchange reports and get your estimated tax liability, Schedule VDA output, and PDF report in minutes.
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