
Aave
AAVERank #45What is Aave?
Aave is a decentralized money market protocol where users can lend and borrow cryptocurrency across 20 different assets as collateral. The protocol has a native token called AAVE, which is also a governance token that lets the community decide the direction of the protocol in a collective manner. Lenders can earn interest by providing liquidity to the market, while borrowers can borrow by collateralizing their cryptoassets to take out loans from the liquidity pools.
How to Buy Aave in India
The easiest way to buy Aave (AAVE) in India is through an FIU-registered Indian exchange. Here's how:
- Create an exchange account — pick an exchange that appears on the FIU-IND register and complete KYC verification (Aadhaar + PAN). Takes under 10 minutes.
- Deposit INR — Add funds via UPI, IMPS, or bank transfer. No minimum deposit.
- Search for AAVE — Use the search bar to find Aave. Tap on it to open the trading pair.
- Place your order — Enter the amount in INR you want to invest. Use a market order for instant purchase, or a limit order to set your price.
- Secure your holdings — Your AAVE is stored in your exchange wallet. For large amounts, consider transferring to a hardware wallet.
Tax on Aave in India
30% flat tax on all crypto profits under Section 115BBH of the Income Tax Act. No deductions allowed except cost of acquisition.
1% TDS on all crypto transactions above ₹10,000 under Section 194S. This is deducted automatically by Indian exchanges and can be claimed as credit when filing ITR.
Losses from Aave trading cannot be set off against gains from other cryptocurrencies or any other income. Each transaction is taxed independently.
For a complete breakdown of crypto taxation in India, including ITR filing steps and airdrop rules, read our Crypto Tax India 2026 Guide.
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