Cryptocurrency transactions and digital assets in India are subject to a stringent, specialized tax framework under the Income Tax Act. Any capital gains derived from the transfer or sale of Bitcoin are taxed at a flat rate of 30% (plus applicable health and education cesses), with no distinction allowed between short-term and long-term holding periods. Furthermore, investors are legally prohibited from offsetting crypto losses against other income sources or carrying forward losses to subsequent financial years, and a 1% Tax Deducted at Source (TDS) is mandatorily withheld on crypto transfer values across compliant domestic exchanges.