Income-tax Act, 1961Section 115BBH
- 30% on VDA transfer gains
- No deduction except cost of acquisition
- VDA losses cannot be set off or carried forward
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 115BBH
Tax rates & regimeSection 115BBH → Section 194
30% tax on income from crypto / virtual digital assets
Section 115BBH of the old Income-tax Act, 1961 · new section 194 under the Income-tax Act, 2025
New reference Section 194, Table Sl. No. 4 (115BBJ online games → Sl. No. 5)
Income-tax Act, 2025Section 194, Table Sl. No. 4 (115BBJ online games → Sl. No. 5)
- Section 194, Table Sl. No. 4: 30%
- Only cost of acquisition deductible
- No set-off or carry forward of VDA losses
- Online game net winnings (old 115BBJ): Sl. No. 5, 30%
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Moved into the special-rate table in section 194; rules unchanged.
Practice notes
- TDS on VDA transfers is separate: section 393(1), Table Sl. No. 8(vi) (old 194S).
Frequently asked
What is the tax on crypto under the new Income Tax Act 2025?
30% under section 194, Table Sl. No. 4, with no deduction other than cost and no set-off of losses.
What is section 115BBH called in the new Income-tax Act, 2025?
Section 115BBH of the Income-tax Act, 1961 corresponds to Section 194, Table Sl. No. 4 (115BBJ online games → Sl. No. 5) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 115BBH under the new Income Tax Act?
Moved into the special-rate table in section 194; rules unchanged.
Is section 115BBH still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115BBH of the 1961 Act. Section 194, Table Sl. No. 4 (115BBJ online games → Sl. No. 5) of the 2025 Act applies from tax year 2026-27.