Published 8 August 2026
4 min read
Written and maintained by the CryptoKar team
Glossary
Cost of Acquisition
Cost of acquisition is what you paid for the lot you are selling, and under Section 115BBH(2)(a) it is the only thing that comes off the sale value. Every other outgoing stays with you.
Key highlights
One deduction, and a hard consequence when it cannot be shown.
- One
Deduction allowed against a VDA gain
Section 115BBH(2)(a)
- Nil
Relief for fees, interest or infrastructure
Whatever the expense was for
- Zero
Cost assumed where the lot cannot be evidenced
The whole sale value is gain
What the Deduction Allows
The acquisition cost of the lot being transferred, and that is the end of the list. The restriction is not framed by category, so there is no argument to be had about whether an expense was wholly and exclusively for the trade: whatever it was for, it does not come off the gain.
Trading fees, platform charges, interest on borrowed funds, transfer costs and the electricity a rig consumed are all outside. So is any expenditure you would deduct without hesitation in a business computation.
Why Evidence Decides the Number
A lot with no acquisition record has a cost of zero for the computation, so the entire consideration becomes gain. On a ₹1,00,000 sale that difference is the gap between tax on a real profit and tax on the full sale value.
This is where FIFO and the deduction meet. First in, first out decides which lot is being consumed; the record for that lot decides what its cost is. Lose the record and the method still runs, just against zero.
Frequently Asked Questions
The questions this term raises most often.
This page states the law and what CryptoKar computes from your trade history. It is not tax advice. Judgment calls belong with a chartered accountant. Sections and dates here were read against the source on 21 August 2026.
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