Cryptocurrencies in India fall under the virtual digital assets (VDAs) category and are subject to taxation. The profits generated from cryptocurrency trading are taxed at a rate of 30 per cent, with an additional four per cent cess as per Section 115BBH. Starting from July 01, 2022, Section 194S imposes a one per cent Tax Deducted at Source (TDS) on transferring crypto assets, applicable if the transactions exceed Rs 50,000 (or Rs 10,000 in specific cases) within the same financial year. This crypto tax applies to all investors, whether private individuals or businesses, engaging in digital asset transfers throughout the year.