Can crypto losses be offset?

Modified on Sun, 30 Apr 2023 at 07:01 PM

Per Section 115BBH, losses incurred in crypto cannot be offset against any capital gains/income, including from cryptocurrency. Additionally, Indian crypto investors in are not permitted to claim expenses related to their crypto trading activities, except for the acquisition cost or purchase cost. 

Also, the trading fee is not allowed as a deduction.

Refer below example for more clarity.

TransactionPriceQuantityTraded ValueRealized Profit/loss
Purchase of 1 BTCINR 1,00,000 (at the time of buying)1INR 1,00,000
Price of 1 BTC rises to INR 2,00,000
Sale of 1 BTCINR 2,00,0001INR 2,00,000INR 1,00,000
Purchase of 2 ETHINR 1,00,000 (Price of 1 ETH)2INR 2,00,000
ETH price falls to INR 50,000
Sale of ETHINR 50,0002INR 1,00,000- INR 1,00,000
Realised Profit / lossINR 0
Taxable ProfitINR 1,00,000 (From sale of 1 BTC)
Tax Applicable: 30%
30% * INR 1,00,000 = INR 30,000

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