Crypto Tax Filing

Accurate Income Tax Return Filing for Cryptocurrency Gains, VDA Income, NFTs, and Digital Asset Transactions

Filing income tax returns for cryptocurrency requires far more than entering a single number — it involves computing gains on every individual transaction across all exchanges and wallets, correctly applying the 30% flat rate under Section 115BBH, reconciling TDS credits under Section 194S, and reporting all crypto income in the correct schedules of the ITR. Getting any part of this wrong risks a scrutiny notice.

Our crypto tax filing service handles the complete process — from importing transaction histories through to filing a verified ITR with all required VDA disclosures. This connects with our crypto consulting, TDS on crypto P2P, and ITR filing services.

Our Crypto Tax Filing Services

Transaction History Import & Reconciliation

Importing and reconciling transaction histories from all exchanges (WazirX, CoinDCX, Binance, Coinbase, Kraken) and wallets — matching buys, sells, swaps, transfers, and fees.

Gain/Loss Computation (FIFO)

Computing gains and losses on each VDA transaction using the FIFO (First In First Out) method — the standard approach for crypto cost basis computation in India.

Schedule VDA Preparation

Preparing the Schedule VDA in ITR-2 or ITR-3 — reporting each VDA, date of acquisition and transfer, cost of acquisition, consideration received, and gain computed.

TDS Credit Reconciliation (194S)

Reconciling TDS deducted by exchanges under Section 194S with Form 26AS and AIS — ensuring all TDS credits are claimed and any mismatches are resolved before filing.

NFT & DeFi Income Reporting

Reporting NFT sale proceeds, staking rewards, liquidity mining income, and airdrop receipts in the correct ITR schedule at fair market value on the date of receipt.

Foreign Exchange Reporting (FA Schedule)

Reporting crypto holdings on foreign exchanges in the Foreign Assets (FA) schedule of ITR-2/ITR-3 — mandatory for residents holding VDAs on overseas platforms.

Key Facts

Crypto gains are reported in Schedule VDA of ITR-2 or ITR-3 — not in the capital gains schedule
The applicable ITR form is ITR-2 (no business income) or ITR-3 (with business income or intraday trading)
Crypto holdings on foreign exchanges must be reported in the FA (Foreign Assets) schedule
TDS under Section 194S is visible in AIS — must be matched against ITR to claim the credit
Cost basis must be computed transaction by transaction — a single portfolio-level computation is not accepted
The due date for crypto ITR is 31 July (non-audit) or 31 October (audit cases) of the assessment year
AIS now shows all exchange-reported crypto transactions — unreported gains are easily detected

Frequently Asked Questions

Which ITR form should I use for crypto gains?

ITR-2 for individuals with crypto gains but no business income. ITR-3 for individuals who also have business/professional income, intraday trading, or futures & options income. Crypto gains are reported in Schedule VDA — not Schedule CG (capital gains). ITR-1 (Sahaj) cannot be used if the taxpayer has any VDA income.

How is cost of acquisition determined for crypto received as gift or airdrop?

For gifted crypto: the cost to the original owner (donor) is treated as the cost to the recipient. For airdrops: the FMV on the date of receipt is the income (taxed at 30%) and also becomes the cost of acquisition for any future sale. For hard fork coins: similarly, FMV on date of receipt is income and cost for future computation.

Can I set off my crypto losses against salary or capital gains?

No. Section 115BBH(2) explicitly prohibits setting off losses from VDA transactions against any other income — including other VDA gains, salary, capital gains, or business income. Crypto losses also cannot be carried forward to subsequent years. Each VDA gain is taxed independently at 30% with no netting or offsetting permitted.

What is the Schedule VDA and what details must be reported?

Schedule VDA in ITR-2 and ITR-3 requires reporting for each VDA: name of the VDA, date of acquisition, date of transfer, cost of acquisition, consideration received, and gain/loss. Each transaction or each type of VDA must be reported separately. The total VDA income flows into the computation of total income taxed at 30% under Section 115BBH.

Do I need to report crypto even if I made a loss?

Yes. VDA transactions must be reported in Schedule VDA regardless of whether there is a gain or a loss — because losses cannot be set off or carried forward, but the transactions must still be disclosed. Failure to report VDA transactions that are visible in AIS is likely to trigger a scrutiny notice even if the net result is a loss.

Crypto ITR Filed Correctly — Every Transaction Accounted For

Transaction reconciliation, Schedule VDA preparation, TDS credit matching, and verified ITR filing.