VDA virtual Digital currency or cryptocurrency.

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This discussion clarifies the tax rates applicable to Virtual Digital Assets (VDAs), commonly known as cryptocurrency, in the UK. It explains that profits from buying and selling crypto are taxed at 30%, plus a 4% health and education cess, bringing the effective rate to 31.2%. The text also touches upon surcharges that may apply to individuals with very high total incomes, but notes that for most retail investors, the surcharge is unlikely to be relevant, making 31.2% the typical tax rate.

Avik Banerjee

Avik Banerjee (Querist)

18 August 2025 Sir Expert,

please solve my query that what is the Tax rate regarding Crypto currency for purchase and sale of VDA through there platform or simply what tax we have to pay for VDA to govt after we get profit

Either it is 30.4% (4 stand for education cess) that is 31.2% or

flat 30% surcharge 15 of 30% i,e =4.5%, cess 4% of (30%+4.5%)=approx 1.38%
Total=30%+4.5%+1.38=35.88% around 36%
please clerify my doubts and please make the calculation how to calculate it

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 August 2025 For most retail users, unless total income is very high, surcharge usually does NOT apply, so effective crypto tax rate is 31.2%.
Surcharge: Applicable only if your total income after all sources exceeds specific thresholds (for individuals, usually ₹50 lakh and above); typically for most retail investors, surcharge may not apply.
Total Tax Payable:
Total = Tax + Cess = ₹30 K+ ₹1,200 = ₹31.2 K
Effective Tax Rate: 31.2% (if no surcharge)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 September 2025 Good luck....

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