Crypto Glossary — English & Hindi
A comprehensive glossary of cryptocurrency and crypto tax terms used in India, with Hindi translations. Covers VDA, TDS, FIFO, Section 115BBH and more — every definition includes Indian tax context where relevant.
Last updated: March 21, 2026 · 32 terms · All tax notes based on Indian tax law (FY 2025–26)
Airdrop
एयरड्रॉप
Free tokens distributed to wallet holders, typically as a promotional or reward mechanism by blockchain projects.
Taxed as 'income from other sources' under Section 56(2)(x) at your applicable slab rate in the year of receipt.
Altcoin
ऑल्टकॉइन
Any cryptocurrency other than Bitcoin. Includes Ethereum, Solana, Ripple, and thousands of other digital assets.
Bear Market
बेयर मार्केट
A prolonged period of declining crypto prices, typically defined as a drop of 20% or more from recent highs.
Bitcoin / BTC
बिटकॉइन
The first and largest cryptocurrency by market capitalisation, created in 2009 by the pseudonymous Satoshi Nakamoto.
Blockchain
ब्लॉकचेन
A distributed, immutable ledger technology that records all transactions across a network of computers. The foundational technology underlying cryptocurrencies.
Bull Market
बुल मार्केट
A prolonged period of rising crypto prices, characterised by investor optimism and sustained upward momentum.
CEX — Centralized Exchange
सेंट्रलाइज़्ड एक्सचेंज
A crypto trading platform operated by a company that custodies user funds. Examples include CoinDCX, Binance, WazirX, and Bybit.
Indian CEXs (CoinDCX, WazirX, CoinSwitch) automatically deduct 1% TDS on sell transactions. Foreign CEXs do not — self-reporting is required.
Cold Wallet
कोल्ड वॉलेट
An offline crypto storage device (hardware wallet) not connected to the internet, used to protect assets from online hacks. Examples: Ledger, Trezor.
Cost of Acquisition
अधिग्रहण लागत
The purchase price paid to acquire a cryptocurrency. Under Indian law, this is the only deduction allowed when computing gains under Section 115BBH.
Section 115BBH explicitly disallows all deductions except cost of acquisition. You cannot deduct brokerage, gas fees, or any other expenses.
DeFi — Decentralized Finance
डीफाई
Financial services built on blockchain protocols without traditional intermediaries like banks. Includes lending, borrowing, and trading via smart contracts.
DeFi income (yield, liquidity pool rewards) is typically taxed as income under Section 56(2)(x). Swaps between tokens are taxable events.
DEX — Decentralized Exchange
डीसेंट्रलाइज़्ड एक्सचेंज
A peer-to-peer trading platform that operates via smart contracts with no central authority. Examples: Uniswap, PancakeSwap, Jupiter.
Trades on DEXs are taxable events just like CEX trades. No TDS is deducted — taxpayers must self-report all gains.
FIFO — First In, First Out
फीफो
An accounting method where the first units purchased are treated as the first units sold. Used to determine the cost basis for tax calculation.
FIFO is the standard and only accepted method in India for computing crypto gains under Section 115BBH. CryptoITR applies FIFO automatically.
Form 26AS
फॉर्म 26AS
An annual tax statement issued by the Income Tax Department showing all taxes deposited against your PAN, including TDS deducted on crypto transactions.
Always reconcile your crypto TDS from exchanges against Form 26AS before filing ITR. Mismatches can trigger notices.
Futures
फ्यूचर्स
A derivative contract obligating the buyer to purchase (or the seller to sell) a cryptocurrency at a predetermined price on a future date.
Futures profits are classified as VDA income and taxed at 30% flat under Section 115BBH. Losses from futures cannot be offset against other income.
Gas Fee
गैस फीस
A transaction fee paid to blockchain validators for processing and confirming transactions on networks like Ethereum and Solana.
Gas fees are NOT deductible under Section 115BBH. Only cost of acquisition can be deducted from crypto gains in India.
HODL
होडल
Slang for holding cryptocurrency long-term regardless of market volatility. Originated from a 2013 forum post misspelling 'hold'. Now backronymed as 'Hold On for Dear Life'.
Hot Wallet
हॉट वॉलेट
A crypto wallet that is connected to the internet, such as a mobile app or browser extension. Convenient for trading but more vulnerable to online attacks.
ITR-2
आईटीआर-2
Income Tax Return form for individuals and HUFs with income from capital gains, including VDA (crypto) income, who are not business owners.
Use ITR-2 if your crypto income is from spot trading classified as capital gains. Use ITR-3 if you trade derivatives (futures/options) as business income.
KYC — Know Your Customer
केवाईसी
Mandatory identity verification process required by exchanges to comply with PMLA (Prevention of Money Laundering Act) regulations in India.
Liquidity
लिक्विडिटी
The ease with which a cryptocurrency can be bought or sold in the market without significantly affecting its price. High liquidity means tight bid-ask spreads.
Market Cap
मार्केट कैप
The total market value of a cryptocurrency, calculated as current price multiplied by circulating supply. A common measure of a coin's relative size.
Mining
माइनिंग
The process of validating blockchain transactions by solving complex cryptographic puzzles, earning newly created cryptocurrency as a reward (Proof of Work).
Mining income is taxable as 'income from other sources' under Section 56(2)(x) at slab rate, based on the fair market value of coins on the date of receipt.
NFT — Non-Fungible Token
एनएफटी
A unique digital asset stored on a blockchain representing ownership of digital art, collectibles, in-game items, or other one-of-a-kind items.
NFTs are classified as VDAs under Indian tax law. Gains from selling NFTs are taxed at 30% under Section 115BBH.
Options
ऑप्शंस
A derivative contract giving the buyer the right (but not obligation) to buy or sell a cryptocurrency at a specific price before expiry.
Options income is taxed as VDA income at 30%. Unlike equity F&O, crypto options losses can only be offset against crypto options gains, not other income.
P2P Trading
पी2पी ट्रेडिंग
Peer-to-peer trading where buyers and sellers transact directly with each other, often facilitated by an escrow mechanism on platforms like Binance P2P.
P2P trades are taxable events. The INR value at the time of the transaction determines the sale consideration for tax purposes.
Section 115BBH
धारा 115BBH
The section of the Income Tax Act, 1961 introduced in the Union Budget 2022, which imposes a flat 30% tax (plus surcharge and cess) on income from Virtual Digital Assets.
Effective from FY 2022–23. Key features: 30% flat rate, no deductions except cost of acquisition, no loss set-off against other income, no loss carry-forward.
Section 194S
धारा 194S
The section of the Income Tax Act, 1961 that mandates 1% Tax Deducted at Source (TDS) on transfers of Virtual Digital Assets where the aggregate value exceeds ₹10,000 in a financial year (₹50,000 for certain individuals).
Effective from July 1, 2022. Indian exchanges deduct TDS automatically. For P2P or DEX trades, the buyer is responsible for deducting and depositing TDS.
Staking
स्टेकिंग
Locking up cryptocurrency in a Proof of Stake network to validate transactions and earn rewards. Common on Ethereum, Solana, Cardano, and others.
Staking rewards are taxed as 'income from other sources' under Section 56(2)(x) at your slab rate, based on fair market value on the date of receipt.
TDS — Tax Deducted at Source
टीडीएस
A mechanism where tax is deducted at the point of transaction. For crypto in India, 1% TDS is deducted on every sale of VDAs above the threshold.
TDS under Section 194S is not the final tax — it is a prepayment. You still owe 30% tax on profits. Excess TDS can be claimed as a refund when filing ITR.
VDA — Virtual Digital Asset
वीडीए
The legal term defined under Section 2(47A) of the Income Tax Act, 1961, covering all cryptocurrencies, NFTs, and other digital assets in India.
The VDA definition is broad — it includes Bitcoin, Ethereum, all altcoins, NFTs, and tokens. It excludes gift cards and mileage points.
Wallet
वॉलेट
Software or hardware that stores the cryptographic keys needed to access and transact cryptocurrency. A wallet does not store coins — it stores the keys.
Whale
व्हेल
An individual or entity holding a large amount of cryptocurrency with the potential to influence market prices through large buy or sell orders.
Frequently Asked Questions
What is a VDA in Indian tax law?
VDA stands for Virtual Digital Asset, defined under Section 2(47A) of the Income Tax Act, 1961. It is the legal term that covers all cryptocurrencies (Bitcoin, Ethereum, altcoins), NFTs, and other digital tokens in India. The VDA classification was introduced in the Union Budget 2022 to bring crypto under the formal tax framework.
What is FIFO in crypto tax?
FIFO stands for First In, First Out. It is a cost basis calculation method where the earliest purchased units are treated as the first units sold. In India, FIFO is the standard and mandated method for computing crypto gains under Section 115BBH. For example, if you bought 1 BTC in January and 1 BTC in March, and sold 1 BTC in June, the January purchase price is used as your cost of acquisition.
What does TDS mean for crypto?
TDS (Tax Deducted at Source) under Section 194S means that 1% of the transaction value is deducted at the point of every crypto sale. Indian exchanges like CoinDCX, WazirX, CoinSwitch, and Delta Exchange deduct this automatically. For trades on foreign exchanges or P2P platforms, taxpayers must self-deduct and deposit TDS. The 1% TDS is a prepayment — your final tax liability is 30% on net profits under Section 115BBH.
Calculate Your Crypto Tax in Minutes
Now that you know the terms — upload your trade history from CoinDCX, Binance, WazirX, or any exchange and get your Section 115BBH tax liability calculated automatically. FIFO method, Schedule VDA export, and PDF report included.
Start Free CalculationLast updated: March 21, 2026