India Just Confirmed: You Can't Offset Crypto Losses (Even Against Other Crypto Gains)
If you trade crypto in India, this is the rule that catches almost everyone off guard.
Section 115BBH doesn't just tax gains at a flat 30%. It also blocks any loss relief:
- A loss on one coin CANNOT offset a gain on a different coin
- Crypto losses CANNOT offset salary, stock gains, or any other income
- Losses CANNOT be carried forward to next year — they just expire
Real example: profit ₹3,00,000 on Bitcoin, loss ₹2,00,000 on an altcoin in the same year. Intuitively you're up ₹1,00,000 net. Under 115BBH you still owe 30% tax on the full ₹3,00,000 Bitcoin gain — the altcoin loss provides zero relief and simply vanishes.
Add the 1% TDS on most transfers and every VDA-to-VDA trade becomes its own fully taxed, non-nettable event. This is one of the strictest treatments of any asset class in India, unchanged since it was introduced.
Full breakdown with more INR examples: https://bitcoinchurchasia.com/en/india-crypto-tax-loss-setoff/
Educational information, not tax advice — talk to a chartered accountant for your situation.