Ethereum's Ether Subject to 30% Tax Rate in India Under New Tax Regime

Ethereum (ETH) has become one of the most widely used programmable blockchains globally, with its native crypto-asset, Ether (ETH), powering a diverse ecosystem of decentralized applications, smart contracts, and token issuance. For Indian assesses, however, ETH is squarely within the purview of Indian tax and regulatory laws, despite being operated on a decentralized network.

The Income-tax Act, 2025, consolidates and updates India's regime for virtual digital assets (VDAs), governing tax on income from transfer of ETH at a special 30% rate, 1% TDS on qualifying consideration for transfer of ETH, and restrictions on deduction, set-off, and carry-forward of VDA losses.

Under the 2025 Act, income from transfer of ETH is subject to a 30% tax rate, with surcharge and health and education cess applying in addition to the base rate. This provision overrides more favorable capital gains features available for certain other assets and restricts deductions and loss treatment for VDA transfers.