The crypto world is not just about trading, it’s also about knowledge. And if you’re someone offering that knowledge as a consultant, whether about blockchain, DeFi, or crypto compliance, you’re probably getting paid well for it. But what about taxes?
Consultancy income, even in crypto, doesn’t escape the tax net in India. Whether your clients pay you in INR or digital tokens, the government expects its share. And if you’re receiving crypto as payment and later selling it for profit, that brings in capital gains tax, too.
In this guide, we’ll explain exactly how crypto consultancy income is taxed in India. Whether you’re full-time in the space or offering occasional advice, it’s important to know what rules apply and how to calculate your liability the right way.
Read More: Ultimate Crypto Tax Guide in India
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Taxation on Income from Crypto Consultancy in India
Earning through consultancy in crypto brings with it a unique set of tax obligations. From regular income tax to capital gains on crypto payments, here’s how it is taxed under Indian law:
Receiving Income From Crypto Consultancy Services
If you offer consulting services in the crypto industry and receive your fees in cryptocurrency, the income is treated as “Income from Other Sources” (IFOS) by the Income Tax Department. You must declare the fair market value (FMV) of the crypto received on the date of receipt and add it to your total annual income.
Read More: How to e-File ITR in India?
Disposal of Crypto Received From Services
If you later sell, trade, or swap the cryptocurrency earned from consultancy, it is treated as a separate transaction and taxed accordingly. The sale of these tokens is subject to a flat 30% Capital Gains Tax (CGT), plus an additional 4% health and education cess.
In cases where the selling price exceeds INR 10,000 or INR 50,000 in some cases, a 1% TDS will also be deducted at the time of sale by the buyer or the exchange. You can claim this deducted amount while filing your return if you do not have any tax liability.
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How To Calculate Taxes on Income From Crypto Consultancy?
If you earn income from crypto consultancy, it’s important to calculate your tax liability correctly. The taxation applies at two stages, when you receive crypto as income, and when you dispose of it later. Let’s break down how to compute both tax types with simple examples.
Calculating Income Tax on Consultancy Income
When you receive cryptocurrency as payment for consultancy services, the value of the tokens at the time of receipt is added to your annual income. It is taxed under Income from Other Sources (IFOS) as per your slab rate.
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Taxable Income = Number of Crypto Received × FMV on Date of Receipt |
If your consultancy qualifies as a business activity, you may also claim deductions for expenses such as rent, subscriptions, and utilities.
Example
Riya is a crypto compliance consultant. In September 2024, she received 200 USDT from a client. On that day, the fair market value of 1 USDT was INR 84.
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Taxable Income = 200 × INR 84 = INR 16,800 |
This amount of INR 16,800 will be added to her total income for the year and taxed according to the slab she falls under.
Read More: Crypto Tax Evasion in India
Calculating Capital Gains Tax on Crypto Disposal
When you later sell, swap, or use the crypto earned through consultancy, you must pay capital gains tax on any profit earned. The capital gain is calculated by subtracting the FMV at receipt from the sale value.
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Capital Gain = Sale Value – FMV at Receipt |
This gain is taxed at a flat rate of 30%, with an additional 4% health and education cess. A 1% TDS may also be deducted by the buyer if the transaction exceeds the threshold.
Example
Riya later sold the 200 USDT in February 2025, when the FMV was INR 95 per token.
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Sale Value = 200 × INR 95 = INR 19,000 |
- FMV at Receipt = INR 16,800
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Capital Gain = INR 19,000 – INR 16,800 = INR 2,200 |
Tax Calculation:
- Capital Gains Tax = 30% of INR 2,200 = INR 660
- Cess = 4% of INR 660 = INR 26.40
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Total Tax = CGT + Cess = INR 686.40 |
Riya will also have a TDS of INR 190 (1% of INR 19,000) deducted by the buyer, which she can claim while filing her ITR.
Read More: How TDS Works on Cryptocurrency in India?
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How Can KoinX Help With Taxes on Income From Crypto Consultancy?
If you’re earning income through consultancy in the crypto space, tracking your earnings and calculating your taxes can become complicated, especially when payments are made in digital tokens. KoinX helps streamline the entire process by automatically handling your income records, disposal history, and tax reports with ease. Here are the features most relevant to crypto consultants:
Accurate Preview of Capital Gains
KoinX gives you a clear preview of capital gains before you sell any crypto you’ve received as consultancy income. By tracking the original value of the tokens at the time of receipt and comparing it to their selling price, it helps you can avoid unexpected tax liabilities while making informed disposal decisions.
Auto-Classification of Transactions
Every incoming payment, token swap, or disposal is automatically categorised by KoinX based on transaction type. Whether you are receiving crypto for services or selling consultancy-earned tokens, this feature helps classify each action correctly so your tax calculations remain compliant with Indian tax rules.
Reliable Tax Reports
With this software, you can generate detailed tax reports that align with the Indian Income Tax Department guidelines. These reports summarise both income and capital gains liabilities from your consultancy transactions, making them easy to share with your accountant or upload directly while filing your returns.
Advanced Assistance from Experts
If your crypto consultancy income involves complex transactions, KoinX gives you access to professional tax assistance. You can consult with vetted crypto tax experts to review your reports, clarify your obligations, or get help with return filing, TDS compliance, and more.
Why wait? Sign up on KoinX today to take the stress out of managing your consultancy-based crypto taxes.
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Conclusion
Consulting in the crypto space can be rewarding, but it also comes with added tax responsibilities. Whether you earn in digital tokens or INR, your income must be correctly reported and taxed as per current regulations.
Keeping up with compliance doesn’t have to be difficult. With the right tools, you can calculate income tax, track capital gains, and prepare your filings without the usual stress. That’s where KoinX becomes a reliable companion for every crypto consultant. If you want to simplify your crypto tax reporting in India, join KoinX today.
Frequently Asked Questions
Can I Claim Deductions on Crypto Consultancy Income?
You can claim deductions only if your consultancy is classified as a business or professional service. Common deductions include expenses such as office rent, internet, software, or utilities. However, if the income is reported under “Income from Other Sources,” no deductions are allowed except for those specifically permitted under that head.
What Happens If I Sell Crypto Received as Consultancy Fees?
If you sell the crypto received for consultancy services at a profit, the gain is treated as capital gains. A flat 30% capital gains tax applies, along with a 4% health and education cess. The fair market value on the date of receipt becomes your cost of acquisition for calculating the capital gain.
Do I Need to File GST on Crypto Consultancy Income?
Yes, if your total annual turnover from consultancy services exceeds the GST threshold (currently INR 20 lakh for most states), you must register for GST and file returns. This applies even if the payment was made in cryptocurrency. Ensure proper invoicing and reporting to stay compliant with GST law.
How Do I Report Crypto Income If I Use Multiple Wallets?
You must consolidate all crypto consultancy income received across wallets and exchanges. Calculate the fair market value of tokens on the date of receipt and report the total as income. Platforms like KoinX can automatically fetch transaction data from multiple wallets and help generate accurate, compliant tax reports.
Is There Any Exemption on Crypto Consultancy Income?
No specific exemptions apply to consultancy income earned through crypto. All earnings, whether received in fiat or crypto, must be declared and taxed as per your income bracket. However, deductions may be claimed if the income is reported under business or profession, provided the conditions for such claims are met.
