Explainers
Learn Hub
Plain answers to the questions people actually ask, written for someone who has never opened an exchange account. No jargon, no price predictions, no affiliate links.
Start here
Crypto Basics
What Bitcoin is, how wallets work, and why prices differ between apps.
24 explainersIndia
Tax & Regulation
The 1% TDS, Schedule VDA, and what the RBI actually banned.
18 explainersIntermediate
Buying & Selling
KYC documents, P2P safety and converting back to rupees.
16 explainersSecurity
Keeping Funds Safe
Exchange risk, seed phrases, and the mistakes that cost people everything.
12 explainersMost Asked Questions
Rendered with FAQPage structured dataIs crypto legal in India in 2026?
Yes. Buying, holding and selling crypto is legal in India. It is not legal tender, and it is not regulated the way securities are, but no law prohibits ownership. Gains are taxed at 30% under Section 115BBH and a 1% TDS applies to most transfers under Section 194S. The 2018 RBI banking circular that caused the confusion was struck down by the Supreme Court in March 2020.
What is the 1% TDS on crypto, and who deducts it?
Section 194S requires 1% of the transfer value to be withheld at source on most crypto transactions. On an Indian exchange, the exchange deducts and deposits it for you. In a peer-to-peer trade, the buyer is responsible. The TDS is not an extra tax, it is credited against your final liability when you file.
What's the difference between a crypto exchange and a wallet?
An exchange is a business that holds your coins and lets you trade them; you have an account, not the keys. A wallet holds the keys yourself. If an exchange fails, your claim is against the company. If you lose your wallet's seed phrase, there is no claim and no recovery.
Can the government track crypto transactions in India?
On public blockchains every transaction is permanently visible. Linking an address to a person requires an off-chain data point, and KYC at a registered exchange supplies exactly that. Indian exchanges report to the Financial Intelligence Unit, and the Income Tax Department has used that data in assessments since FY 2022-23.
Why does Bitcoin have value if nothing backs it?
Nothing backs a US dollar either, beyond the expectation that others will accept it. Bitcoin's price reflects supply that is fixed and verifiable, demand from people who want an asset no government can issue more of, and the cost of the electricity securing the network. Whether that justifies any particular price is a separate question.
SpecLearn pages carry no affiliate links and no ad units above the answer. Google's helpful-content guidance treats monetisation that interrupts the answer as a negative signal.