For the person receiving
Under section 56(2)(x), property received without consideration is taxed as income from other sources if its value exceeds ₹50,000 in a financial year. The Finance Act 2022 added virtual digital assets to the list of property. Gifts from specified relatives, and gifts on marriage, are exempt. The value counted is the fair market value at receipt.
Example
A friend gifts you Bitcoin worth ₹80,000. The whole ₹80,000 is taxable in your hands at your slab rate. The same gift from a parent is exempt.
For the person giving
Giving Bitcoin away is itself a transfer of the asset, and how 30% tax and 1% TDS apply to the giver on a gift is not clearly settled. Ask your CA before gifting large amounts, and keep a record of the date, value and recipient.
Sources: Income Tax Department of India and the Finance Act 2022 (inserted sections 115BBH, 194S and 2(47A) into the Income-tax Act, 1961). The Income-tax Act, 2025 applies from 1 April 2026 and renumbers sections; the rules described here are carried over in substance, but check the current numbering with your CA.
General information, not tax or legal advice. Rules change and your situation may differ. Check your own return with a chartered accountant.
Common questions
Is a Bitcoin gift taxable in India?
To the receiver, yes, if the value exceeds ₹50,000 in a year and the giver is not a specified relative. Gifts from relatives are exempt.
Risk: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Everything here is education, not investment, tax or legal advice.