As the financial year comes to a close, India’s crypto investors are preparing to file their Income Tax Returns (ITR). With clear taxation rules now governing Virtual Digital Assets (VDAs) like Bitcoin and Ethereum, staying compliant is more important than ever. Alongside trading, crypto staking has become a popular avenue for passive income, and platforms like HashStaking and GeekStake are leading the way in offering secure, profitable ETH staking solutions for both beginners and advanced investors.

Here’s what you need to know before filing your crypto taxes—and how to make the most of your ETH staking rewards.

1. Crypto Gains Are Taxed at a Flat 30% Rate

Since April 1, 2022, all gains from cryptocurrency sales are taxed at a flat 30% under Section 115BBH of the Income Tax Act. This applies regardless of whether profits are short-term or long-term. Additional surcharges and a 4% cess also apply. Importantly, the only deduction allowed is the cost of acquisition.

2. 1% TDS Applies to Every Crypto Transaction

Under Section 194S, a 1% Tax Deducted at Source (TDS) applies to all VDA transfers. On compliant exchanges, this is automatically deducted, but individuals are responsible for TDS on transfers outside regulated platforms. Failure to comply may result in penalties, interest, or even imprisonment.

3. Choose Staking Platforms That Offer Transparency and Rewards

While filing taxes, it’s important to note that staking rewards are considered taxable income. Leading ETH staking platforms like HashStaking and GeekStake offer transparent reward tracking and detailed records, making it easier to calculate and report staking income.

• HashStaking is perfect for beginners or casual investors:
  • Easy ETH staking without technical setup or validator selection
  • Fixed daily yields on 21-day ETH plans
  • Instant setup with a $100 welcome bonus and referral rewards
  • Transparent lock-in periods and real-time reward tracking
• GeekStake targets advanced investors and long-term ETH holders:
  • Institutional-grade staking with higher APR
  • Detailed validator data and slashing protection
  • Infrastructure-grade reliability and advanced performance dashboards
  • Premium tiers offering up to $156K+ in returns

4. All Crypto Income Is Taxable

Crypto tax liability goes beyond trading. Mining, staking, airdrops, and even crypto received as salary are all taxable. Staking rewards, for instance, are taxed as regular income according to the investor’s tax slab. Platforms like HashStaking and GeekStake make it easier to track these rewards and remain compliant.

5. New ‘Schedule VDA’ in ITR from FY26

Starting FY 2025-26, ITR forms include a dedicated ‘Schedule VDA’ section to report gains, transfers, and holdings related to digital assets. Accurate reporting is critical to avoid penalties and ensures transparency in the growing crypto ecosystem.

Conclusion:

Crypto tax compliance is crucial, and investors should keep careful records of all trading and staking activities. For those looking to maximize passive income while staying compliant, HashStaking and GeekStake are top-ranking ETH staking platforms that combine security, transparency, and profitable yields. Whether you’re a beginner seeking simplicity or an advanced investor aiming for higher returns, these platforms provide the tools to manage staking income efficiently while meeting all tax obligations.