Most people think, FREE tokens = FREE of tax. Not true in India. Airdrops, staking rewards, referral bonuses, L2 incentive tokens are all are taxed as income on the day you receive them, at your normal slab rate. If you later sell them, that sale triggers another 30% tax under 115BBH. Free token today → two taxable events tomorrow. Example: You receive 50 XYZ tokens as an airdrop when they launch, worth ₹20 each. You must pay income tax on ₹1,000 that year. Later, you sell them for ₹3,000. Your profit of ₹2,000 is taxed again at 30% under Section 115BBH. One free airdrop → two tax events.