Yes, gifting Bitcoin can be taxable in India, and the tax usually falls on the person who receives it. Under section 56(2)(x) of the Income-tax Act, property received without paying for it is taxed as income from other sources if its total value goes above ₹50,000 in a financial year. Since the Finance Act 2022, virtual digital assets count as property for this rule. Gifts from specified relatives, and gifts received on marriage, are exempt.
So a Bitcoin gift from your parent is generally not taxed in your hands, while the same gift from a friend can be, once your gifts from non-relatives cross ₹50,000 in the year. The value is the fair market value on the day you receive it. The giver's side, meaning whether the 30% tax or the 1% TDS applies when someone gifts Bitcoin, is not clearly settled. That part needs a CA's view before you do it.
Why I care about this question
A lot of people in India get their first Bitcoin as a gift. A cousin who works in tech sends a little to a sibling. An uncle gives a few thousand rupees' worth at a wedding instead of an envelope. Someone wants to give their parents something more interesting than a sweet box at Diwali.
I like that. Since 2013, when we launched Unocoin, I have watched far more people learn about Bitcoin from someone they trust than from any advertisement. A small gift, explained well, is how a lot of curiosity begins.
But a gift that creates a surprise tax problem is not much of a gift. So if you are planning to give or receive Bitcoin this festive season, do it with records, and do it with a CA's view on your own situation.
The receiver's side: section 56(2)(x)
Section 56(2)(x) is the general rule on gifts. If you receive property without paying for it, or for less than its value, and the total value from non-exempt sources in a financial year is more than ₹50,000, it is taxed in your hands as income from other sources, at your normal slab rate.
The Finance Act 2022 added virtual digital assets to the list of "property" this rule covers. That is what brings Bitcoin gifts into it. The value used is the fair market value at the time you receive the gift.
Three points people often miss:
- The ₹50,000 limit is for the whole financial year, across gifts from non-exempt sources, not per gift.
- Once you cross ₹50,000, the whole amount becomes taxable, not only the part above ₹50,000.
- This is slab-rate tax on receiving the gift. It is separate from the 30% tax on VDA gains that applies when you later sell or transfer.
The relatives and marriage exemption
Gifts from specified relatives are exempt from this rule. So are gifts received on the occasion of marriage. The Act defines "relative" with a specific list, and parents are on it. If the person giving is not a parent or obviously close family, check the list with your CA before assuming the exemption applies.
Example: friend vs parent
This is the example we use on the site's gifting guide, and it makes the difference clear.
A friend gifts you Bitcoin worth ₹80,000. That is above ₹50,000 and a friend is not an exempt relative, so the full ₹80,000 is taxable in your hands at your slab rate as income from other sources.
Now say the same ₹80,000 of Bitcoin comes from your parent. Parents are specified relatives, so the gift is exempt in your hands.
Same coins, same day, same value. Different tax result, because of who gave them.
When you later sell a gifted coin
Receiving the gift and selling the coin are two separate events. When you sell or otherwise transfer the Bitcoin, the income is taxed at a flat 30% under section 115BBH, plus surcharge and 4% cess. Only the cost of acquisition can be deducted. No other expenses. Losses on VDAs cannot be set off against any other income and cannot be carried forward.
How the cost of acquisition is worked out for a coin you got as a gift is exactly the kind of detail to confirm with a CA, because it affects how much gain you report. Keep the record of the value on the day you received it, either way.
The 1% TDS under section 194S, now section 393 under the Income-tax Act, 2025, applies when you sell on a platform like any other sale. It shows in your Form 26AS and AIS, and you claim it as tax already paid when you file.
The giver's side is not settled
This is the honest part. How the 30% tax and the 1% TDS apply to the person giving Bitcoin is not clearly settled. Is a gift a "transfer" that creates income for the giver? Does a gift between two people involve a payer who should deduct TDS? Different professionals read it differently, and I am not going to pretend there is one clean answer.
What I would do as a giver: talk to a CA before making a large gift, keep the record of what you bought the Bitcoin for and when, and keep the record of the gift itself. If your CA thinks a filing or deduction is needed, you will have everything ready.
Records to keep
For both sides, the records are what protect you. Tax departments today see more data than ever. From 2026, exchanges collect and report more crypto transaction data under the Crypto-Asset Reporting Framework, so what you file should match what the platforms report.
- Date of the gift and the fair market value in rupees on that date. A screenshot of the price plus the transfer record is a good start.
- Who gave it and their relationship to you, especially if you are relying on the relatives exemption.
- The transaction ID of the transfer, from wallet to wallet or within a platform.
- For the giver: your original purchase records, including date and cost.
- For later: every sale, with the TDS deducted.
If the gift moves to a self-custody wallet, the self-custody and tax guide covers what to keep when the coins are no longer on a platform.
A note on how you give
Two practical safety points before the festive season. First, never ask the person you are gifting to for their OTP, password or PAN over chat, and never give yours to anyone helping you send a gift. A receiving wallet address is all you need. Second, if the receiver is new to Bitcoin, walk them through it in person. Show them the app, show them where the coins sit, and tell them to never share their seed phrase. That conversation is worth more than the gift.
And keep it modest. A gift should be something the receiver can watch go up and down without it hurting, because Bitcoin's price moves in both directions.
A quick checklist before you give or receive
- Who is giving, and are they a specified relative? If not, the ₹50,000 yearly limit matters.
- What is the rupee value on the day of the gift? Write it down with a screenshot.
- Is this truly a gift, or is any money changing hands? If the receiver pays anything, it is not a plain gift, and your CA needs to know.
- Has the giver spoken to a CA about their side, given that it is not settled?
- Does the receiver know how to keep the coins safe, and that nobody genuine will ever ask for their OTP, password or seed phrase?
Five questions, five minutes. They save a lot of trouble at tax time.
For the full rules, the exemption details and more worked examples, read the gifting guide, then check your case with a CA. The broader tax guide covers the 30% rule and TDS in detail.
Common questions
Is gifting Bitcoin taxable in India?
It can be. Under section 56(2)(x), a VDA received as a gift is taxed in the receiver's hands at slab rates if gifts from non-exempt sources exceed ₹50,000 in a financial year. Gifts from specified relatives and on marriage are exempt. Check your case with a CA.
Is crypto gift from parents taxable?
Parents are specified relatives, so a gift of Bitcoin from a parent is generally exempt in the receiver's hands under section 56(2)(x). A later sale is still taxed at 30% under section 115BBH.
Do I pay TDS when I gift crypto?
How the 30% tax and 1% TDS apply to the giver is not clearly settled. Ask a CA before making a large gift, and keep your purchase and gift records.
How is the value of a crypto gift calculated?
The fair market value on the date you receive it. Keep a record of the rupee price on that date along with the transaction ID.