As of now (July 2025), Bitcoin is legal in India, but with certain restrictions and regulations:
What’s Legal:
- Buying, holding, and selling Bitcoin and other cryptocurrencies on regulated exchanges is allowed.
- You can invest in Bitcoin for personal use.
- Cryptocurrency is taxed under Indian law.
What’s Not Legal or Regulated:
- Bitcoin is not legal tender — you cannot use it to pay for goods or services like rupees.
- The Reserve Bank of India (RBI) does not recognize Bitcoin as currency.
- Some types of crypto activities like anonymous trading, crypto scams, and unregulated ICOs are prosecuted or penalized.
Tax Rules in India:
- A 30% tax is applied on gains from selling cryptocurrencies.
- 1% TDS (Tax Deducted at Source) applies on crypto transactions above a certain limit.
- Losses from crypto trading cannot be set off against other income.