Gifting crypto in India: tax rules for giver and receiver
Gifting Bitcoin or other crypto in India? Who pays tax, the ₹50,000 rule, which relatives are exempt, and what happens when the gift is later sold.
- Checked against the rules: May 2026
- Sources cited · No buy or sell calls
- Tax year 2026–27
Gifting crypto to a spouse, child or friend is common, and the tax rules follow India's general gift rules, with a few crypto-specific twists.
Tax for the person receiving the gift
India taxes gifts as income of the receiver under the "income from other sources" head, with important exemptions:
- From a relative: fully exempt, whatever the amount.
- On the occasion of your marriage: exempt.
- By will or inheritance: exempt.
- From anyone else: taxable at your slab rate if the total value of all such gifts received in the financial year is more than ₹50,000. Once you cross ₹50,000, the whole amount is taxable, not just the excess.
Crypto is treated as property for this purpose, valued at its fair market value on the date you receive it.
Who counts as a relative?
The definition is broad. It includes your spouse, your brothers and sisters, your spouse's brothers and sisters, the brothers and sisters of either of your parents, any lineal ascendant or descendant of you or your spouse (parents, grandparents, children, grandchildren), and the spouses of these people. Friends, cousins and colleagues are not relatives.
Tax for the person giving the gift
A gift isn't a sale: the giver receives nothing in return, so there's normally no gain to tax. But some professionals view a gift of crypto as a "transfer" under the VDA rules, and TDS questions can arise on platform transfers. If you're gifting a large amount, take advice first.
Gifting a large amount to a spouse can also trigger "clubbing", where income from the gifted asset is taxed in the giver's hands. Ask a tax professional before moving significant holdings to family.
When the receiver sells
When the receiver later sells or swaps the gifted crypto, the 30% VDA tax applies to any gain. The open question is the cost:
- If the gift was taxed on receipt, the value taxed is commonly used as the cost.
- If it was exempt, for example from a relative, many professionals use the giver's original cost.
Either way, losses can't be set off. See the complete crypto tax guide and use the crypto tax calculator to estimate the tax.
Records to keep
- The date of the gift, the coins and amount, and the wallet addresses.
- The rupee value on that date and your price source.
- For gifts from relatives, a note of the relationship and, ideally, a simple gift letter.
- The giver's original purchase records, if available.
How to report it
- Taxable gifts received go under income from other sources in your ITR.
- Sales of gifted crypto go in Schedule VDA. See the Schedule VDA guide.
Frequently asked questions
Can I gift crypto to my parents tax-free?
Yes. Parents are relatives, so the gift isn't taxed in their hands. When they sell, the 30% rule applies to any gain.
Are airdrops treated as gifts?
Some advisers treat them that way. Most treat them as income. See airdrop tax in India.
Does gifting help me avoid tax?
Not in any meaningful way. Clubbing rules, the 30% rate on the eventual sale and the ₹50,000 limit for non-relatives prevent most tax-saving strategies.
Is crypto received as a gift taxable?
It can be. Gifts from relatives and on occasions like marriage are generally exempt. Gifts from others above ₹50,000 in a year are generally taxed as income.
Do I pay tax when I give crypto as a gift?
Giving crypto can be a transfer, and TDS rules may apply. Take advice for large gifts.
Sources
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