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Is crypto gifting allowed in India? Key FAQs on tax rules, exemptions, calculations and ITR filing answered
Mint 9 hrs ago·18 Aug 2026, 11:28 am
The Income Tax Department has clarified that gifting cryptocurrencies in India is permissible, provided the transaction is documented. The recipient is not liable for tax on the gift itself. However, when the gifted crypto is sold, any profit is taxed as a capital gain, which could be short-term or long-term depending on the holding period.
This rule is crucial for investors who frequently transfer assets to family members. It ensures that tax liability is deferred until the asset is actually sold. Investors must maintain clear records of the gift's fair market value at the time of transfer and the date of sale to accurately calculate their capital gains for Income Tax Return (ITR) filing.
Going forward, taxpayers should review their ITR forms to ensure they correctly report these transactions. Proper documentation is essential to avoid scrutiny from tax authorities. Staying compliant with these guidelines helps investors manage their tax liabilities effectively while participating in the digital asset market.
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