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F-14/15, Orbit Mall, Civil Lines, Jaipur-302006 support@thetaxheaven.comCryptocurrency investing is no longer a niche trend in India — it’s a growing asset class that has attracted millions of investors. But with this growth comes responsibility, especially when it comes to taxes. The Indian government has made it clear: crypto gains are taxable. If you're investing in Bitcoin, Ethereum, or using AI-driven platforms like Fravellunax, it's essential to understand how to legally minimize your tax liability in FY 2025–26.
In this blog, we’ll break down 5 smart and legal ways to reduce your crypto tax burden, while staying fully compliant with Indian tax laws.
Before diving into the tips, let’s quickly understand how crypto is taxed in India.
As per Section 115BBH of the Income Tax Act, starting FY 2022-23:
All profits from Virtual Digital Assets (VDAs) including crypto and NFTs are taxed at a flat 30% rate.
A 1% TDS is deducted at source under Section 194S when selling crypto assets.
No deductions are allowed except for the cost of acquisition.
Losses from crypto cannot be set off against other income.
So, yes, taxation is strict — but not unmanageable.
Frequent crypto trading can trigger multiple taxable events in a year, increasing your total tax liability. By contrast, holding your crypto long-term helps reduce tax stress and TDS deductions.
Imagine buying Bitcoin at ₹20 lakh and selling it within 3 months at ₹22 lakh. You’ll pay 30% tax on ₹2 lakh. Now, imagine holding it until next year and selling it at ₹28 lakh — the gain is ₹8 lakh, but only one TDS event and one tax event is triggered.
✅ Pro Tip: Platforms like Fravellunax.it help you set AI-based long-term strategies, so you avoid impulsive short-term trades.
Loss harvesting means selling loss-making crypto assets before the end of the financial year to reduce your overall taxable gain.
You made ₹3 lakh profit on Ethereum, but you’re also holding a meme coin with ₹1 lakh unrealized loss. By selling the loss-making coin, your net gain becomes ₹2 lakh, reducing your tax.
⚠️ Note: In India, you can’t offset crypto losses against other income, but you can use them to offset crypto gains from the same category.
The biggest cause of unnecessary tax is bad timing — buying high, selling low, panic trading.
That’s where AI-powered crypto investment platforms like Fravellunax come in. It offers intelligent portfolio management that:
Avoids unnecessary trades,
Tracks your gains in real time,
Helps you stay compliant with Indian tax laws.
By using Fravellunax.it, you reduce the chances of panic trades that trigger taxable events. AI algorithms help optimize entries and exits based on market signals — not emotions.
???? Pro Tip: Keeping records becomes easy with such platforms — a must when you file ITR.
Not all crypto platforms are equal. Some offshore exchanges don’t provide TDS certificates or proper tax documentation, which could land you in trouble with the Income Tax Department.
Instead, choose platforms that:
Offer TDS support,
Provide tax reports,
Are transparent with data.
This is another reason why platforms like Fravellunax.it are gaining popularity. Not only do they use advanced AI to manage your crypto portfolio, but they also help keep your transaction history ready for tax season.
Timing matters a lot in crypto taxation. Planning your buy/sell moves based on the financial year (April to March) can help you avoid tax surprises.
Sell loss-making assets before March 31st to claim allowable losses.
Defer profits to the next FY if it helps you stay in a lower total tax bracket.
Avoid large gains in a single year — spread them out if possible.
If you use platforms like Fravellunax, you can track projected gains year-wise and plan accordingly.
The Income Tax Department has started sending notices to people trading in crypto but not declaring it in their ITR. Always report your crypto income under “Income from Other Sources” or the new VDA section in your ITR form.
Keep detailed logs of:
Buy/sell prices
Dates of transactions
Wallet addresses
Exchange fees
Tools like Fravellunax help auto-generate these reports for easy tax filing.
With taxation becoming stricter, choosing the right crypto investment platform is more important than ever. Here's how Fravellunax helps Indian investors:
| Feature | Benefit to You |
|---|---|
| AI-Powered Trade Optimization | Reduces emotional trades and unwanted tax events |
| Automated Tax Reports | Easy ITR filing without manual tracking |
| Real-Time Gain Tracking | Always know your potential tax liability |
| Tax-Efficient Portfolio Design | Maximize gains while minimizing tax |
You can visit Fravellunax.it to learn how their intelligent crypto investing model can save you both time and taxes.
Paying tax on crypto is inevitable in India — but paying extra tax is not. With the right strategy, tools, and timing, you can reduce your tax liability legally while staying 100% compliant with the law.
Whether you’re a seasoned trader or just getting started with AI-based investing, platforms like Fravellunax offer an edge — not just in profits, but also in smart tax management.
No, 30% tax on gains from crypto is mandatory as per Section 115BBH. However, you can reduce your taxable gains using strategies like loss harvesting and long-term holding.
Unfortunately, no. As per Indian law, no deductions (except cost of acquisition) are allowed.
Yes, Fravellunax tracks your gains/losses in real time and offers tax reporting features to make your ITR filing process easier.
If you found this article helpful, feel free to share it with other crypto investors. And don’t forget to check out Fravellunax.it for AI-powered crypto investing that’s optimized for better returns and better tax outcomes.
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