Every citizen who is a tax resident of India and makes money in crypto – whether they are a trader, miner, yield farmer or airdrop recipient – must declare their assets and pay a tax under the new Finance Bill of 2022.
Moreover, India has not yet decided if crypto currencies are generally legal or not. So tax is levied on the exchange of crypto currency for any fiat, trading in crypto-currency, including stable coins and payment for goods and services with a virtual digital asset. However, losses are not recognized by law, which means that you cannot offset capital gains with losses or business expenses. The new legislation has killed trading in India: in fact, every trade now has to pay a tax of 1% of the trader's capital.