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To cash out bitcoin in India in 2026, you must use a government-registered exchange (like Mudrex or CoinDCX) and complete PAN-based KYC verification.
If you sell bitcoin to cash it out, remember, a flat 30% tax on profits and a mandatory 1% TDS (Tax Deducted at Source) would be taken automatically by the exchange.
Once your Bitcoin is sold for INR, you can transfer the cash to your bank using UPI or IMPS for near-instant delivery (minutes) or NEFT for larger amounts that may take a few hours.
The crypto market has kept everyone on their toes lately with extreme volatility. Bitcoin tried to climb around to Rs. 64 lakhs ($72,000) on February 9, quickly pulling back to approximately Rs. 61 lakhs ($69,729) on February 10 at the time of writing. This constant back-and-forth was mixed with uncertainty over global reserve plans and shifting regulatory policies.
The huge price swings in crypto prices have made many Indian investors ask the question: Is it time to pull some money out? If the answer for you is yes, and if you are looking to move gains into an Indian bank account, you have found the right article. Cashing out Bitcoin to Indian Rupees (INR) in 2026 is a clear, multi-step, smooth process. Let’s explore how you can do this while following all the latest crypto rules in India.
The first step is picking a platform that works well in India. Most people use exchanges like Mudrex, CoinDCX, or ZebPay because they are easy to use and handle the local tax work for you. Since these platforms are registered with the government, they follow strict safety rules. When you sign up, you will need to complete your KYC (Know Your Customer) process by uploading your PAN card and Aadhaar details. This is a must if you want to withdraw money to your bank.
Once your account is ready and your bank is linked, you need to have your Bitcoin on the exchange. If your BTC coins are currently in a personal digital wallet, you will need to send it to your exchange’s deposit address. After the Bitcoin shows up in your account, look for the ‘Sell’ button. You can choose to sell it at the current market price for an instant trade. If you want a specific price, you can set a ‘limit order,’ which only sells when the market hits your target.
When you sell Bitcoin and make a profit, you have to pay a 30% tax on those crypto gains. Also, the exchange will automatically take 1% as TDS (Tax Deducted at Source) during the sale. This might seem high, but it helps the government track transactions and makes your tax filing much simpler at the end of the year. Always check the ‘Tax Report’ section on the exchange to see how much has been cut.
After the sale is complete, your INR will show up in your exchange wallet. To get this into your actual bank account, go to the ‘Withdrawal’ section. You can usually choose between UPI, IMPS, or NEFT. UPI and IMPS are very fast and often send the money in just a few minutes. NEFT is better for very large amounts but might take a few hours. Make sure the bank account you are using is under your name, or the transfer might get blocked for safety reasons.
Safety should always be a top priority. Always turn on Two-Factor Authentication (2FA) on your Exchange account so that no one else can move your funds. If you decide to go for Peer-to-Peer (P2P) trading, only use the platform’s official chat and never release Bitcoin until the money appears in your bank account. P2P trading is where you sell directly to another person. Following these simple safety steps would ensure that your journey from Bitcoin to cash is quick, legal, and secure.
Also Read: Should You Buy, Sell, or Hold Bitcoin in 2026?
Cashing out Bitcoin is a good idea when you have reached your profit targets or when the market feels too volatile for your comfort. Right now, the market is in a ‘wait-and-watch’ mode. Bitcoin price dropped below the key Rs. 61 lakhs today, on February 10, in morning trade, creating a cautious mood among investors.
US Federal moves and shifting Trump’s crypto plans are causing uncertainty in the crypto markets lately. Experts suggested that if this continued, the crypto prices may fall sharply in the coming days. If you are worried about Bitcoin sliding further toward the Rs. 58-60 lakhs support zone (approximately $66,000-68,000), selling a portion of your holdings now can help you secure your profits while the market decides its next big move.
Also Read: Top 10 Crypto Exchanges in India: Features, Fees & Reviews
Cashing out Bitcoin in India is easy in 2026. By using a reputable local exchange, staying on top of your KYC, and planning for the 30% tax, you can move your money safely. The crypto market moves fast, and the goal for most is to see that money in their bank account. Stick to these steps, and you will find the process is quite manageable.
Note: The $ amounts are converted to INR (Rs.) for this article using the DBS Currency Converter. Prices across other platforms may vary; please do your own research.
1. Is it legal to sell Bitcoin in India in 2026?
Yes, selling Bitcoin in India is legal in 2026. The government does not ban crypto trading, but it regulates how it is taxed and reported. You are allowed to buy, sell, and hold Bitcoin using registered exchanges. However, all profits must be declared, and taxes must be paid correctly. As long as you follow KYC rules and tax laws, you will be fine.
2. How long does it take to get INR after cashing out Bitcoin?
The time depends on the withdrawal method you choose. UPI and IMPS transfers usually reach your bank within minutes or a few hours. NEFT transfers can take a few hours and sometimes up to one working day. Delays may happen if bank details are incorrect or if the exchange performs extra security checks on large amounts.
3. How much tax do I need to pay when I sell Bitcoin?
In India, profits from selling Bitcoin are taxed at a flat 30%. This applies only to gains, not the full selling amount. Moreover, exchanges deduct 1% TDS at the time of sale. This TDS is adjusted when you file your income tax return, so it is important to keep transaction records and tax reports.
4. Can I cash out Bitcoin directly from my private wallet?
You cannot cash out Bitcoin for INR directly from a private wallet. First, you must transfer your Bitcoin to a crypto exchange that supports INR withdrawals. Once the Bitcoin appears in your exchange account, you can sell it and withdraw the money to your bank. Always double-check the deposit address before sending funds to avoid losses.
5. Is P2P selling of Bitcoin safe in India?
P2P selling can be safe if done carefully through trusted platforms. Always use the exchange’s official P2P system and never move conversations outside the platform. Do not release your Bitcoin until the money reflects in your bank account. Avoid deals that sound rushed or too good to be true, as these are common red flags.
