Discover the top cryptocurrency exchanges for Indian traders in 2026, with INR deposits, UPI support, and compliance with India's crypto tax regulations.
India is home to one of the largest crypto communities in the world, with over 100 million people holding some form of digital currency. After years of regulatory back-and-forth, the landscape has finally stabilized. Crypto is legal and regulated under the Prevention of Money Laundering Act (PMLA). The one major catch? India imposes one of the toughest crypto tax regimes anywhere: a flat 30% tax on gains and a 1% TDS (Tax Deducted at Source) on every transaction.
**How Fees Compare**
WazirX charges 0.1-0.2% for maker and taker trades. CoinDCX is similar at 0.1% maker and 0.15% taker. CoinSwitch Pro uses spread-based pricing, typically 0.5-1%. For the lowest fees, Binance P2P lets you trade INR pairs with zero platform fees. Most Indian traders deposit using UPI (Unified Payments Interface) or IMPS bank transfers, which are usually free and instant. NEFT and RTGS transfers also work but take longer to settle.
**Staying Safe as a Trader in India**
- Only use exchanges registered with the Financial Intelligence Unit (FIU). All legitimate Indian exchanges must have this registration
- UPI deposits give you instant, fully traceable transactions, making them ideal for buying crypto
- Steer clear of "pump-and-dump" Telegram groups that specifically target Indian traders with promises of quick profits
- Keep detailed records of every transaction. You will need them when filing your Income Tax Return (ITR)
- Remember that the 1% TDS is automatically deducted by exchanges, but you still need to report all your transactions separately
**What Makes These Exchanges Stand Out**
CoinDCX has built out a solid staking and lending platform for users who want to earn yield on their holdings. WazirX offers a professional trading interface with advanced order types for more experienced traders. CoinSwitch Pro provides OTC services for institutional-sized trades. One real advantage Indian traders have is the country's UPI infrastructure, which makes depositing funds instant and free, something most other countries cannot match.
**What You Need to Know About Taxes**
India's crypto tax is a flat 30% on all profits, with no deductions allowed except the original cost of acquisition. The 1% TDS kicks in on all transactions above INR 10,000 per year (or INR 50,000 for specified persons like HUFs and companies). Unlike most countries, you cannot offset crypto losses against other income, and losses cannot be carried forward to future years. This makes frequent short-term trading particularly expensive compared to what traders pay in other countries.
Crypto Regulations in India
India taxes crypto at a flat 30% on gains with 1% TDS (Tax Deducted at Source) on all transactions above ₹10,000. Crypto is legal but heavily regulated under the Income Tax Act. The RBI has not banned crypto but maintains a cautious stance. Exchanges must comply with PMLA (Prevention of Money Laundering Act) requirements and register with the Financial Intelligence Unit (FIU).
Frequently Asked Questions
Is crypto legal in India?
Yes. Crypto is legal and regulated under PMLA. All exchanges must register with the Financial Intelligence Unit (FIU).
How is crypto taxed in India?
A flat 30% tax on gains with no deductions. 1% TDS applies on all transactions above INR 10,000/year. Losses cannot be offset or carried forward.
What is the best crypto exchange in India?
CoinDCX offers the lowest fees and best features. WazirX has the most trading pairs. CoinSwitch is simplest for beginners.
Can I use UPI to buy crypto?
Yes. UPI is the most popular deposit method on Indian exchanges, offering instant, free INR transfers.
What is the 1% TDS on crypto?
Exchanges automatically deduct 1% tax on all crypto transactions above INR 10,000/year. This is adjustable against your final tax liability when filing ITR.