What is clear
- A sale, swap or spend of Bitcoin is a transfer and is taxed as described on the tax guide, wherever the coins are held.
- Gains are computed from your cost of acquisition, which does not change because you moved the coins.
- Holding Bitcoin in your own wallet does not itself create tax.
What to confirm with your CA
The Income Tax Department has not issued specific guidance on moving your own coins between your own wallets. The widely held practitioner view is that sending coins to yourself is not a sale, because there is no consideration and no change of owner, but it is a view, not a ruling. Network fees paid in Bitcoin are another grey area. Ask your CA how they will treat them.
Records matter more once you self-custody
Your exchange history stops at the withdrawal. Keep the withdrawal transaction ID, the destination address, the date, and your original purchase records so your cost of acquisition can be shown years later. Keep the recovery phrase offline and never share it. See the security guide.
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 moving Bitcoin to my own wallet taxable?
There is no specific ruling. The common view is that sending coins to a wallet you own is not a sale. Confirm with your CA and keep records.
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.