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Your First Round Trip, End to End

Published by the Drishti team · Reviewed 2026-11-07 · Researched and edited with AI assistance.

Module 3 · Chapter 8 of 8 · ~5 min read · Tax and law facts as of November 2026

The last chapter built your trade journal, the sheet that feeds Schedule VDA at tax time. Now put one real trade through it, from the first rupee to the last.

• ₹500deposited by UPI
• ₹538.92sale value after an 8% rise
• No TDSthis sale sits under the yearly threshold
• ₹525.38left once tax is paid

8.1 The plan before you press buy

Every earlier chapter in this module taught one piece: KYC, deposits, order types, the spread, fees, TDS, withdrawals, the journal. A first real trade uses all of them in one short sitting.

Decide three things before you press buy. How much you will risk, here ₹500. Which order type, a limit order resting at a price you pick, not a market order that chases whatever price is on offer. And which coin, here Bitcoin, already cleared for Indian residents to buy in the legal-status chapter.

A ₹500 trade teaches the same lessons as a ₹5,00,000 one. Fees, spread and tax apply at the same rate, whatever the size.

8.2 Deposit, buy and hold

Add ₹500 to your INR wallet, the rupee balance inside the exchange, by UPI; it usually lands within minutes, as the deposit chapter showed.

Place a limit order for Bitcoin worth ₹500; the exchange charges its fee on this leg too, as it did on every trade in the fees chapter.

Holding for nine days is a choice here, not a rule. Prices can fall as easily as they rose; the chapter on why crypto prices swing so much showed how fast that can happen.

8.3 Sell and withdraw

Sell the whole position for ₹538.92. The exchange charges its sell fee, and checks whether 1% TDS, tax deducted at source, applies.

TDS only bites once your sales on that exchange cross ₹10,000 in a financial year, or ₹50,000 for a specified person who already deals in bigger sums. One ₹538.92 sale, your first of the year, sits well under both lines, so no TDS is withheld here.

Sell fee: 0.2% × ₹538.92 = ₹1.08. Your INR wallet now shows ₹538.92 − ₹1.08 = ₹537.84. Withdraw that to your verified bank account, and it should land within the hour by IMPS, a fast bank transfer.

Follow the ₹500 from deposit to the day you file, one row at a time.

Each row only changes because of the step before it; the running balance never jumps on its own.

8.4 The tax lines on a ₹500 trade

Your taxable gain is the sale value minus the cost of acquisition, the price you first paid for the coin. Fees are not deductible, so only ₹499.00 counts as cost.

₹538.92 − ₹499.00 = ₹39.92 taxable gain. Tax applies at 31.2%, the flat 30% rate under Section 194 plus 4% cess: 31.2% × ₹39.92 is about ₹12.46.

No TDS was withheld this time, so the full ₹12.46 is due when you file, not a top-up on a smaller number.

A bill this small may still need an advance-tax instalment during the year, depending on your full income picture, though a gain this size rarely crosses that line alone. Check your own case with a chartered accountant.

A kirana shop owner would call this closing the khata: write down what came in, what went out, and what is still owed.

8.5 What you learned and what to do next

Start to finish: ₹500 in, a limit order, a nine-day wait, a sale, a withdrawal, a tax line. You kept ₹525.38 of a trade that gained ₹39.92 on paper, once every fee and the tax were paid.

Scale this up and the shape stays the same; only the rupee amounts grow. KYC, deposit, order type, spread, fee, TDS, withdrawal and tax apply the same way whether you trade ₹500 or ₹5,00,000.

This chapter closes the module on buying, holding and selling. Next, we turn to keeping your crypto safe: custody, wallets, and where your coins actually sit.

This chapter is educational only. It is not tax, legal or investment advice. Check current rules with a chartered accountant.

Key takeaways

• A ₹500 trade carries the same fee, spread and tax rules as a much bigger one.
• Deposit, buy, hold, sell and withdraw all move through one INR wallet.
• No TDS does not mean no tax; report every gain, however small.
• Only the cost of acquisition reduces a taxable gain, never fees or spread.
• A ₹39.92 gain here cost ₹12.46 in tax, leaving ₹525.38 of the original ₹500 plus profit.
• Next: keeping your crypto safe once you hold it.

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Educational & illustrative only — not investment advice. Drishti Pro publishes AI-generated trade ideas and their public track record for information. Crypto is volatile and you can lose money. Nothing here is a recommendation to buy or sell any asset. Do your own research.