India’s crypto investment scene is under pressure. Despite ₹1 crore in current Bitcoin trading volume, the Indian tax regime is stifling growth with its harsh tax policies. Investors once enjoyed a massive 123% gain on Bitcoin holdings in recent years — but now, they’re calling the current tax system “daylight robbery.”
Under India’s current tax regime, crypto profits are taxed at a flat 30%, plus a 4% surcharge. To make matters worse, every crypto trade — regardless of profit or loss — is subject to a 1% TDS (Tax Deducted at Source).
But that’s not all:
This leaves Indian crypto investors with no room for tax planning and no protection for losses, making the landscape extremely restrictive.
Amid this tough environment, Bitcoin ETFs are emerging as a smart alternative for Indian investors looking to save on taxes.
Here’s why Bitcoin ETFs are treated more favorably:
According to some HNIs (High-Net-Worth Individuals), Bitcoin ETF structures can save up to 60% in taxes compared to direct Bitcoin investments.
While ETFs provide a structured route, direct Bitcoin investments still come with regulatory and security concerns:
Despite Bitcoin’s potential, the current tax treatment and lack of regulatory safeguards make direct investment less attractive.
Bitcoin ETFs, on the other hand, offer:
For Indian investors looking to stay in the crypto game without getting crushed by the tax hammer, Bitcoin ETFs could be the smartest move yet.
India imposes a flat 30% tax on crypto gains and a 1% TDS on transfers over ₹10,000, with no loss set-off.
India has a multi-agency approach involving RBI, SEBI, and the Ministry of Finance to oversee various aspects of cryptocurrency.
Yes, from April 1, 2025, SEBI began monitoring crypto tokens resembling securities, aligning with a multi-agency regulatory model.
Bitcoin (BTC) price is regaining momentum after rebounding from lows near $108K, currently trading around…
South Korea will join the OECD’s Crypto-Asset Reporting Framework (CARF) to share crypto transaction data…
One of the biggest token launches of this cycle has just gone live, World Liberty…
XRP is trying to bounce back again. After sliding through much of August, the token…
The launch of the World Liberty Financial ($WLFI) token on September 1, 2025, has already…
The demand for Gold as a global reserve currency has surged in the past year.…