February 22, 2026
10 mins
Read more
January 30, 2026
January 30, 2026
India’s cryptocurrency sector faces unclear regulations and strict tax enforcement. The Reserve Bank of India is cautious, and the Income Tax Department enforces some of the world's toughest crypto tax rules.
Many investors find these tax rules and compliance steps overwhelming. This guide will help you find independent crypto advisors who understand India’s tax system and can help you avoid mistakes, without trying to sell you products for their own gain.
India manages crypto mainly through tax rules, not specific regulations. This means crypto is not illegal, but the government makes it costly and complicated to own.
Section 115BBH of the Income Tax Act imposes a flat 30% tax on all crypto gains. No deductions. No loss offsets. You can't claim expenses for mining equipment, transaction fees, or trading costs. Section 194S mandates 1% TDS (Tax Deducted at Source) on transactions exceeding ₹10,000 annually.
Independent consultants help you keep accurate records for tax filing and reduce your risk if rules change later. They work for you, not for exchanges that want you to trade more.
Businesses looking into blockchain or token projects face extra challenges. Crypto activities can involve FEMA rules, GST issues, and possible securities law concerns, depending on the project.
International transactions make things even more complicated. The Liberalised Remittance Scheme limits sending money abroad to $250,000 per year, which affects using foreign exchanges or moving assets overseas.
Crypto advisors in India usually specialize in different areas, each solving specific problems.
Tax specialists are typically chartered accountants registered with the Institute of Chartered Accountants of India (ICAI) who've developed expertise in Section 115BBH. They handle ITR filing, TDS calculations, and correspondence with the Income Tax Department.
Legal consultants interpret how existing financial laws apply to crypto activities. Entity structuring, regulatory risk assessment, and legislative monitoring fall within their scope.
Technical advisors review blockchain setups, check smart contracts, and suggest ways to keep assets safe. These experts usually have technology backgrounds, not finance or law.
Strategy consultants help crypto businesses with market entry, business models, and partnerships, especially given India’s uncertain rules.
Most individual investors should start with tax specialists. Legal and technical consultants are more important if you are building products, have large holdings that need extra security, or face regulatory questions.
India manages crypto mainly through taxes, not licenses. This difference is important when judging if a consultant really understands your situation.
Budget 2022 introduced Section 115BBH, which taxes virtual digital assets at 30% regardless of holding period. The government explicitly prevented loss deductions or expense claims. If you lose ₹100,000 on one coin and gain ₹100,000 on another, you owe ₹30,000 in taxes on the gain with no relief for the loss.
Section 194S created TDS obligations, forcing platforms and individuals to withhold 1% on transactions above the ₹10,000 threshold. Both parties to the transaction may be liable for TDS, depending on how the exchange is structured.
GST treatment remains undefined. The Central Board of Indirect Taxes hasn't issued crypto-specific guidance, leaving uncertainty about whether service fees or certain transaction types trigger GST obligations.
FEMA governs cross-border money movement. Using international exchanges may implicate LRS limits or require specific reporting. Banks vary wildly in their willingness to process crypto-related transfers, creating operational friction.
The RBI issues periodic warnings about crypto risks, but hasn't established formal oversight mechanisms. You operate in a space where the central bank disapproves but hasn't forbidden activity.
Parliament continues debating the comprehensive regulation. Financial Action Task Force (FATF) compliance requirements may eventually force clearer frameworks, though the timeline remains unknown.
To find real crypto experts in India, you need to tell the difference between true specialists and those just taking advantage of the confusing rules.
Chartered accountants with established crypto practices represent your safest starting point. The ICAI doesn't yet offer formal crypto credentials, but individual CAs have built specializations in Section 115BBH compliance. Search for CAs publishing educational content about crypto taxation or speaking at fintech conferences.
Law firms with fintech or technology groups often employ lawyers tracking crypto developments. These practices monitor RBI announcements, court decisions (including the 2020 Supreme Court ruling overturning the banking ban), and proposed legislation.
Some wealth management firms now say they handle crypto, but check if their staff really understands India’s tax rules, not just general crypto investing. International tax knowledge does not always mean they know Section 115BBH.
Industry associations and professional networks connect you with experienced practitioners. Organizations like IndiaTech and blockchain-focused groups maintain member directories and host events where you can meet specialists.
Don’t rely only on advice from exchanges. Platforms like WazirX or CoinDCX share educational content, but their business interests can conflict with giving truly independent advice.
Academic institutions with blockchain programs sometimes maintain advisory networks or alumni connections. IITs and other technical universities increasingly offer blockchain courses that produce knowledgeable practitioners.
The platform you choose affects your tax paperwork, how you document transactions, and how much work your advisor will have to do.
Indian platforms like WazirX, CoinDCX, and ZebPay automatically handle Section 194S TDS deductions and generate tax documentation in the format required for Indian returns. The 1% withholding appears in your records, and platforms issue the necessary certificates for ITR filing.
Indian exchanges make it easier for your advisor because their reports align with what the Income Tax Department requires. TDS credits show up automatically in Form 26AS, so you don’t have to worry about matching records.
International platforms like Binance or Kraken have more coins and sometimes better prices, but you must handle TDS calculation and payment yourself. Their transaction records may not fit Indian reporting formats.
Banks scrutinize deposits from international platforms more closely than those from Indian exchanges. Some Indian banks even block international crypto transactions, so you might need to use other banks or less convenient payment options.
Your consultant should be familiar with the compliance rules for any platform you use. Using more than one exchange makes things more complicated, since you have to combine transactions for TDS and keep full records of losses, even though losses don’t lower your taxes. Good records show you are tracking everything correctly.
Business clients face additional platform considerations. Using exchanges without proper KYC and AML procedures creates risk, even though India lacks formal crypto licensing requirements.
To find a qualified independent crypto advisor in India, you need to carefully check their credentials, expertise, and business practices.
Tax and compliance consultants should hold valid chartered accountant credentials from the Institute of Chartered Accountants of India. Request their ICAI membership number and confirm it through the ICAI member search portal.
Confirm they maintain an active practice certificate. CAs must renew these annually and complete continuing education requirements.
Some chartered accountants work alone, while others are part of bigger firms. A large firm does not always mean more crypto expertise. Sometimes, individual advisors have deeper knowledge.
Ask consultants directly whether they receive compensation from exchanges, wallet providers, or crypto service platforms. Genuine independence means earning fees solely from clients, never from commissions or referral kickbacks.
Demand written disclosure of all business relationships that could create conflicts of interest. Some practitioners consult for crypto companies while serving individual clients. This dual role isn't automatically problematic, but you need full transparency about potential loyalty conflicts.
Pay attention if a consultant always recommends the same platforms, no matter your needs. Truly independent advisors give advice that isn’t tied to any one platform.
Test knowledge with specific Section 115BBH questions. Have them walk through the tax liability calculation for a scenario involving both trading profits and staking rewards.
Qualified practitioners cite exact Income Tax Act provisions, CBDT circulars, and relevant precedents. They should immediately explain that the 30% rate applies universally across crypto income types and that loss set-offs are prohibited.
Discuss TDS obligations under Section 194S. They need to clarify the 1% withholding requirement and how to claim TDS credits when filing returns.
Ask for examples of common tax situations they've handled: holding period implications (none exist under current law), gift taxation, airdrop treatment, and hard fork classification.
For consultants working with businesses or significant portfolios, technical knowledge becomes essential. Have them explain the differences between custodial and non-custodial wallets, multi-signature security mechanisms, or DeFi protocol risk evaluation.
Technical skills help advisors understand how transactions work, which affects how your income is taxed and what risks you face. If a consultant can’t tell the difference between staking and yield farming, they might classify your income incorrectly.
This expertise becomes critical when implementing blockchain solutions or launching token projects. Practitioners need smart contract functionality knowledge, an understanding of consensus mechanisms, and technical security awareness.
Obtain references from clients matching your profile. High-net-worth individuals should speak with other high-net-worth clients about their experiences.
Learn what specific problems the practitioner solved. References should describe concrete results: successful tax filings despite complex transaction histories, resolution of exchange disputes, or compliant business structure implementation.
Good consultants share case studies (with client details removed) that show how they solve problems. They explain how they handled unclear regulations or made compliance easier.
India lacks comprehensive crypto regulation, but AML and KYC obligations still apply to certain activities. Practitioners should understand how the Prevention of Money Laundering Act (PMLA) affects crypto businesses.
Discuss whether they understand Financial Intelligence Unit reporting requirements and how crypto transactions might trigger suspicious activity reports from banks.
Business clients need specialists who can explain platform KYC obligations, the implementation of compliant verification procedures, and applicable documentation standards.
Inquire about common regulatory issues their clients encounter: bank account restrictions due to crypto activity, income tax notices regarding unreported gains, or GST uncertainty.
Experienced practitioners know how to respond to tax department inquiries, what documentation satisfies audit requirements, and when legal representation becomes necessary.
They should keep up with new rules and changes. Ask how they follow RBI updates, budget news, and discussions about crypto laws in Parliament.
Independent practitioners use straightforward fee models: hourly billing (typically ₹2,000-₹10,000 hourly depending on complexity), fixed project rates, or monthly retainers for ongoing compliance support.
Obtain written agreements specifying covered services, payment timing, and how additional work gets billed. Avoid consultants using percentage-based fees tied to portfolio size or claimed tax savings.
Project work such as tax return preparation, should use milestone-based payments. You pay for completed work stages rather than everything upfront.
Clear fees are a sign of independence. If a consultant won’t explain their pricing, they might be getting paid in other ways.
Comprehensive crypto guidance often requires cross-specialty coordination. Determine whether practitioners maintain relationships with crypto-focused lawyers, technical security auditors, or other specialists.
These partnerships help when your needs go beyond the advisor’s main skills. For example, a tax expert who works with blockchain security firms can arrange technical audits and also handle your tax issues.
Find out how they manage client situations requiring legal opinions or technical assessments. Strong practitioners either provide quality referrals or coordinate multidisciplinary teams.
See if the advisor explains complex rules in a way you can understand. If you leave meetings confused, they are not doing their job well.
For ongoing engagements, discuss service level expectations. How quickly will they respond to questions? What happens during peak periods like tax season?
Clarify deliverables upfront. Tax compliance services should produce specific outputs: completed ITR forms, TDS reconciliation reports, and documented crypto transaction records for tax purposes.
Tax situations evolve, and regulations shift. Determine what support practitioners provide after completing initial work. Will they answer questions if you receive tax notices? Do they provide updates when regulations change?
Some specialists include limited follow-up in their fees, while others charge for all post-engagement communication. Establish expectations upfront.
Annual retainers typically include ongoing support, regulatory updates, and year-round availability for questions.
For practitioners accessing sensitive financial information, data protection matters. Inquire what systems protect client data and whether they've undergone security assessments.
CAs must comply with ICAI data protection standards, but crypto-specific specialists should implement additional security given the risks associated with digital assets.
Confirm how they store transaction records, tax documentation, and private information. Cloud storage should employ encryption and access controls.
India’s crypto tax rules create challenges for compliance, but also give smart investors chances to plan ahead.
Carefully check any advisor before hiring them. Doing your homework protects you from tax penalties, breaking rules, or getting bad advice.
Rules are still changing. Parliament might pass new crypto laws, and the RBI is working on a digital rupee. Your advisor should stay up to date on these changes and update their advice as needed.
At CoinTerminal, we make early-stage Web3 fundraising accessible. No token gating and no staking requirements. Complete KYC once, and you're ready for any sale. Every contribution of $250 or more automatically enters you into our monthly $5,000 lottery, even if you request a refund later.
Check out our active IDOs and see what's live now.
This article is for educational purposes only. It is a general guide for founders and users navigating the Web3 space. It does not constitute financial advice. Always do your own research before making any investment decisions.If you want to learn more about raising funds or which IDOs to look into, our team is here to help. Feel free to reach out to us on Telegram at any time.
