What Are Unrealised Gains?
Unrealised gains are the potential profit on crypto you still hold. It is the difference between what you paid (your purchase cost) and what your holdings are worth today (current market value). These gains are “on paper” because you have not locked them in yet. You have not sold. How your accounting method determines purchase cost Example:- Amount invested: Rs. 2,02,000
- Current portfolio value: Rs. 2,34,500
- Unrealised gains: Rs. 32,500
When Does Unrealised Become Realised?
Unrealised gains become realised gains the moment you execute a taxable transaction:- Sell crypto for fiat (INR, USD, etc.)
- Swap one crypto for another
- Spend crypto to buy goods or services
Are Unrealised Gains Taxable in India?
No. In India, you are not taxed on unrealised gains. The 30% crypto tax under Section 115BBH only applies when you actually transfer or dispose of your assets.Simply holding crypto, even if its value increases significantly, does not create a tax liability in India. Tax is triggered only when you sell, swap, or spend.
My Portfolio Shows a Very High Unrealised Gain
If your portfolio shows an unusually large unrealised gain, it does not mean you have that money. It is an estimate based on current market prices applied to your holdings. To actually receive that amount, you would need to sell at those prices. Crypto markets are volatile. Prices can move significantly by the time you execute a trade, and large sells can also move the market against you.Why Is My Portfolio Showing a Loss?
Seeing a loss even when prices increased today? A few common reasons:- You bought at the peak: Your purchase price was higher than the current market price.
- Missing buy transactions: Some purchase orders were not synced, so your cost basis appears incomplete or too low, making the gain look smaller or negative.
- Incomplete history: Transfers or rewards that were not imported may have affected how your cost basis is calculated.
Current Value Lower Than Purchase Cost
This simply means the market price has dropped since you bought. The loss is unrealised until you sell. No tax event has occurred yet. See how realised gains appear on your Transactions pageFrequently Asked Questions
Are unrealised gains taxable in India?
Are unrealised gains taxable in India?
No. Tax is triggered only when a transfer event occurs, such as selling, swapping, or spending crypto. Holding assets, even if their value increases, does not create a tax liability in India.
Does daily price movement affect my unrealised gains?
Does daily price movement affect my unrealised gains?
Yes. Daily price changes will update your unrealised gains figure. As long as you continue holding without selling, these movements remain unrealised and non-taxable.
Can KoinX give me my unrealised gains as cash?
Can KoinX give me my unrealised gains as cash?
No. KoinX is a tax reporting platform, not an exchange. We calculate and display your portfolio value, but we do not hold your crypto or process withdrawals. To convert unrealised gains to cash, sell the assets on your exchange.
Why does KoinX show different gains than my exchange?
Why does KoinX show different gains than my exchange?
KoinX calculates gains based on the transactions imported into your account. If historical transactions are missing or not fully synced, the values may differ from your exchange. Additionally, KoinX refreshes market prices approximately every 6 hours rather than in real time, so there will often be a small timing difference compared to live exchange prices.
Can I use unrealised losses to reduce my tax?
Can I use unrealised losses to reduce my tax?
Unrealised losses have no tax impact in India until you sell. Once you sell an asset at a loss, it becomes a realised loss. However, under current Indian VDA tax rules, losses from crypto generally cannot be offset against gains from other crypto assets or other income. Consult your CA for guidance on your specific situation.