File ITR for Cryptocurrency

Step-by-Step Income Tax Return Filing for Cryptocurrency Investors and Traders — All Exchanges, All VDAs, All Transactions

Filing an ITR for cryptocurrency is not a simple process — it requires identifying every taxable event across all exchanges and wallets, computing gains transaction by transaction, applying the correct 30% rate, claiming TDS credits from Form 26AS, populating Schedule VDA correctly, and e-verifying the return. Missing any step can result in scrutiny notices, penalties, or defective return notices.

Our cryptocurrency ITR filing service is designed for investors who want the peace of mind that their return is complete, accurate, and consistent with the data the income tax department already has from exchanges. This connects with our crypto tax filing, crypto consulting, and TDS on crypto P2P services.

Our File ITR for Cryptocurrency Services

Exchange Statement Collection

Gathering transaction statements from all exchanges used — WazirX, CoinDCX, ZebPay, Binance, Coinbase, Kraken, and others — in the formats required for tax computation.

All-Exchange Gain Computation

Computing gains across all exchanges using FIFO cost basis — consolidating transactions from multiple platforms into a single gain/loss statement for ITR preparation.

AIS Crypto Data Matching

Matching the AIS crypto transaction data (reported by exchanges via SFT) against the computed gains — identifying and explaining any discrepancies before filing.

ITR-2 / ITR-3 with Schedule VDA

Filing ITR-2 or ITR-3 with a fully populated Schedule VDA — each VDA reported with acquisition date, transfer date, cost, consideration, and gain — consistent with AIS data.

Foreign Asset (FA) Schedule

Reporting crypto held on foreign exchanges in the FA (Foreign Assets) schedule of the ITR — with the platform name, country, peak balance, and closing balance in Indian Rupees.

E-Verification & Acknowledgement

Completing e-verification of the filed ITR through Aadhaar OTP, net banking, or DSC within 30 days of filing — and providing the ITR-V acknowledgement to the taxpayer.

Key Facts

Use ITR-2 if you have only investment crypto gains; ITR-3 if you also have business income or F&O trading
ITR-1 (Sahaj) cannot be used by anyone with VDA income — even a small crypto gain requires ITR-2 or higher
Crypto held on foreign exchanges must be disclosed in the FA schedule — failure is a Black Money Act risk
AIS shows exchange-reported crypto data — your ITR must be consistent with AIS to avoid mismatch notices
TDS under 194S credited in AIS can be claimed as a tax credit in the ITR — reducing net tax payable
The ITR due date is 31 July for non-audit taxpayers — late filing forfeits loss carry-forward rights
An updated return (ITR-U) can be filed within 2 years to disclose unreported crypto income — with additional tax

Frequently Asked Questions

Can I file my crypto ITR myself or do I need a CA?

You can self-file on incometax.gov.in, but the process is complex for active traders. The income tax portal pre-fills some data from AIS but does not automatically compute Schedule VDA — you must enter each VDA transaction manually. For investors with hundreds or thousands of transactions across multiple exchanges, professional assistance significantly reduces errors and the risk of notices.

What if I traded on a foreign exchange that is not in AIS?

Foreign exchange transactions may not appear in AIS if the exchange has not reported to Indian authorities. However, resident Indians are required to disclose all VDA income regardless of whether it appears in AIS — under the full disclosure obligations of Section 139. Additionally, foreign crypto holdings must be reported in the FA schedule. Undisclosed foreign crypto assets may also attract attention under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015.

What is the ITR-U and can I use it to disclose past crypto gains I missed?

Yes. ITR-U (Updated Return) under Section 139(8A) allows disclosure of previously unreported income — including crypto gains — within 2 years of the end of the relevant assessment year. Filing ITR-U requires payment of additional tax: 25% of tax plus interest if filed within 12 months, or 50% if filed between 12 and 24 months. ITR-U cannot be used to claim refunds or reduce existing tax liability — only to add previously omitted income.

How are crypto gains taxed if I also have salary income?

Crypto gains under Section 115BBH are taxed at a flat 30% — this is in addition to the tax on salary income computed at slab rates. The 30% crypto tax is computed first on the VDA gains; then salary income is computed separately at applicable slab rates. The basic exemption limit cannot be used to offset crypto gains — it applies only to non-special-rate income. Both components are combined into the total tax liability in the ITR computation.

What is the consequence of receiving a crypto-related income tax notice?

The most common notices are: Section 143(1)(a) — mismatch between ITR and AIS crypto data; Section 133(6) — information request about crypto transactions; and Section 143(2) — scrutiny assessment. Responding promptly with complete transaction records, exchange statements, and gain computations is essential. Unexplained crypto income assessed under Section 68/69 is taxed at 60% plus surcharge plus 10% penalty under Section 271AAC — far worse than the standard 30%.

Your Crypto ITR — Complete, Correct, and Stress-Free

All exchanges, all VDAs, Schedule VDA, AIS matching, FA schedule, and e-verified filing.