Tax · 6 min read
How to Cash Out Crypto Trading Profits in India (Safely)
Made money trading crypto or memecoins? How to cash out profits to your Indian bank account without P2P freezes, what records to keep, and how the 30% tax works.
By Bryan Aaron · Updated
Quick answer
Sell your coins for USDT, send the USDT on TRC20 to a business that pays INR from its own bank account, such as a direct offramp, and keep your trade history and payout UTRs. Profits on crypto are taxed at a flat 30% plus cess, and losses can't be set off.
You made money trading crypto, on memecoins, futures or a lucky altcoin, and now you want it in your Indian bank account without a frozen account or a tax notice. Here's the clean way to do it, from locking in the profit to filing the tax.
Step 1: Lock in the profit as USDT
Sell the coin for USDT where you hold it. That stops price swings while you cash out, and USDT is what you'll send to get INR.
- On an exchange (Binance, Bybit, OKX and others): sell on the spot market for USDT.
- In a wallet (Phantom, MetaMask and others) after trading memecoins: swap to USDT in the wallet, then send it to an exchange that lets you withdraw USDT on TRC20, or swap and withdraw there. Disburz accepts USDT on TRC20 today, not on Solana or Ethereum.
Step 2: Send it to a business that pays INR
Avoid P2P for profits: the bigger the amount, the more buyers you deal with, and each one is a freeze risk. A direct offramp gives you one payout from a business, with a UTR. On Disburz you get the exact INR before you send, with no documents to upload: today ₹50 fee + 3 USDT network deduction, which is 0.07% (₹338.00) on 5,000 USDT.
Step-by-step guides: Binance, Bybit, OKX, KuCoin, Bitget, MEXC and others, Trust Wallet.
Step 3: Keep the paper trail
- Trade history from every exchange or wallet you used (export it as CSV while you still can).
- Your purchase cost for each coin you sold.
- Transaction hashes of the USDT you sent, and the UTR of every INR payout.
Your bank may ask where a large credit came from, and the tax department will see it in your AIS.
Step 4: Pay the tax
- Profit on each crypto sale is taxed at a flat 30% plus cess, whatever your slab.
- Losses on one coin can't be set off against profits on another, or carried forward.
- 1% TDS can apply on transfers above yearly thresholds; it counts towards your tax.
- Futures and derivatives profits on offshore exchanges can be treated differently; ask a CA how to report them.
Full rules: crypto tax and TDS in India. Cashing out ₹10 lakh or more? Read how to sell a large amount of USDT safely.
What not to do
- Split profits across dozens of P2P buyers to “stay under the radar”. It multiplies freeze risk and doesn't avoid tax.
- Trust anyone who DMs you offering a better rate for a big cash-out.
- Move funds through friends' bank accounts. Payouts should go to an account in your own name.
Trading a funded account? See how to withdraw a prop firm payout to an Indian bank account.
