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How to Buy Bitcoin in India 2026 — 30% Tax & 1% TDS Legal Guide

Quick Answer

Bitcoin is legal in India and was never banned by the RBI. You buy it on FIU-registered exchanges (Binance, CoinDCX, WazirX) using UPI or bank transfer. Gains are taxed at a flat 30% plus a 1% TDS on transactions — so keep careful records. Here is the step-by-step, compliant way to start.

Is Bitcoin legal in India?

Yes. Buying, holding and selling Bitcoin is legal in India. The Reserve Bank of India never banned crypto, and a 2020 Supreme Court ruling struck down an earlier banking restriction. Today, exchanges must register with the Financial Intelligence Unit (FIU-IND) and follow strict anti-money-laundering and KYC rules. Crypto is regulated and taxed — not prohibited.

India’s 30% tax and 1% TDS explained

Profits from crypto are taxed at a flat 30% (plus surcharge and cess), and you cannot offset losses against other income or carry them forward. Separately, a 1% TDS is deducted at source on transactions above the threshold (₹10,000 for most individuals, ₹50,000 for specified persons). The TDS is not an extra tax — it is credited against your final liability — but it does tie up cash, so frequent traders feel it most. Keep a record of every buy and sell for your return.

Best exchanges and how to pay with UPI

FIU-registered and India-friendly options include Binance (registered with FIU-IND), CoinDCX and WazirX for INR pairs, plus KuCoin and Bybit for a wider coin selection. Most accept UPI, IMPS and bank transfer; UPI deposits are usually instant and free. Always confirm the exchange is currently FIU-registered and turn on two-factor authentication.

How to buy Bitcoin in India — step by step

  1. 1

    Choose an FIU-registered exchange

    Pick Binance (FIU-IND registered), CoinDCX or WazirX for INR. Verify current FIU registration before depositing.

  2. 2

    Complete KYC with PAN & Aadhaar

    Upload your PAN card and Aadhaar for identity verification. This is mandatory and usually approved within a few hours.

  3. 3

    Deposit INR via UPI

    Fund your account using UPI, IMPS or bank transfer. UPI is instant and typically free.

  4. 4

    Buy Bitcoin

    Place a market or limit order on the BTC/INR or BTC/USDT pair. Remember the 1% TDS applies to taxable transactions.

  5. 5

    Move to self-custody

    For significant holdings, transfer your Bitcoin to a Ledger or Trezor hardware wallet for safety.

Start with an FIU-registered exchange

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Buying Bitcoin in India — FAQ

Is Bitcoin legal in India?▼

Yes. Bitcoin is legal to buy, hold and sell in India — it was never banned by the RBI. Exchanges must register with the Financial Intelligence Unit (FIU-IND) and follow anti-money-laundering rules. Crypto is taxed but not illegal.

How is Bitcoin taxed in India?▼

Crypto gains are taxed at a flat 30% (plus applicable surcharge and cess), with no deduction for losses against other income. In addition, a 1% TDS (tax deducted at source) applies on transactions above the threshold (₹10,000 for most users, ₹50,000 for specified persons). Keep records of every trade.

Can I buy Bitcoin with UPI in India?▼

Yes. Most India-focused exchanges and global platforms supporting INR accept UPI, IMPS or bank transfer. UPI deposits are usually instant and free, making them the most popular way to fund an account.

Which exchanges are best for buying Bitcoin in India?▼

FIU-registered options include Binance (registered with FIU-IND), CoinDCX and WazirX for INR/UPI, plus KuCoin and Bybit for wider coin selection. Always verify the exchange is FIU-registered and enable two-factor authentication.