Crypto Tax in India: How to Report VDA Income in Your ITR

Short answer

Report crypto in Schedule VDA, which is in ITR-2 and ITR-3 (ITR-2 can't be used if you have business or professional income). Each transfer gets its own row with the acquisition date, transfer date, cost and sale value, and losses are entered as nil. Positive gains flow to Schedule CG and are taxed at 30% plus surcharge and cess under Section 115BBH. TDS deducted at 1% is claimed against your tax.

By Kabir NorthUpdated Prices checked
Educational only, not tax, legal or investment advice. Rules differ by country; speak to a qualified professional.
Trading involves substantial risk of loss.

This is general information, not tax advice. Each rule below is taken from the Income Tax Department sources listed here.

Last checked 26 Oct 2026 · Sources: ITR-2 form, AY 2026-27 (Notification 46/2026), ITR-2 validation rules, AY 2026-27, ITR-2 FAQ, Section 115BBH and TDS on VDA transfers (Section 194S).

Step by step

  1. Pick the form. Schedule VDA is in ITR-2 and ITR-3 (ITR-2 FAQ, Q16). ITR-2 is for filers without business or professional income. The form for AY 2026-27 covers FY 2025-26.
  2. List every transfer. Export trade histories from every exchange and wallet. Every sale, swap or spend is one row.
  3. Fill in Schedule VDA. For each row enter the acquisition date, transfer date, “Capital Gain” as the head, cost of acquisition, consideration received, and income (column 6 minus column 5). Enter nil if the result is a loss.
  4. Check the total. The total of the positive incomes must equal item C2 in Schedule CG. The portal’s validation rules check this.
  5. Claim TDS. Match the 1% TDS in Form 26AS against your exchange statements, then claim it.

The rules behind the numbers

Rule What it means
Rate 30% plus surcharge and 4% cess (Section 115BBH)
Deductions Cost of acquisition only
Losses Entered as nil. No set-off against other income and no carry forward
TDS 1% under Section 194S. No TDS if the payer’s aggregate for the year is up to ₹10,000 (₹50,000 if the payer is a specified person); 20% without a PAN (Section 206AA)
Detail One row per transfer

Doing it yourself or using a tool

  • By hand: this works for a few transfers, using exchange profit-and-loss statements.
  • Tax software: tools like Koinly (₹490 to ₹1,990 per tax year, listed as of 23 Oct 2026) build per-trade lists. Many are built around loss-netting systems, so check that losses aren’t netted against gains. See crypto tax software for India.
  • Chartered accountant: use one if you trade often, received crypto as income, or hold assets abroad (the ITR-2 form includes Schedule FA for foreign assets).

Who each route fits, based on published features and pricing: this is a reading of official forms and published prices, not a tested recommendation. No tool or filing route was tested hands-on for this page.

Other countries and tools

What this page doesn’t cover

It doesn’t cover crypto received as salary, business income or gifts in detail, or rules for years after AY 2026-27. This is general information, not tax advice. Confirm on the e-filing portal or with a chartered accountant.

Frequently asked questions

Which ITR form do I use for crypto?

The ITR-2 form for AY 2026-27 (Notification 46/2026) contains Schedule VDA, and the department's ITR-2 FAQ (Q16) says Schedule VDA is in both ITR-2 and ITR-3. ITR-2 can't be used if you have income from business or profession; in that case check the ITR form the e-filing portal assigns you.

What goes in Schedule VDA?

The AY 2026-27 form asks for every transfer as a separate row: acquisition date, transfer date, the head of income, cost of acquisition, consideration received, and income (sale value minus cost, with nil entered for a loss).

Can I enter a crypto loss?

No. The form says to enter nil in case of loss. Section 115BBH doesn't allow a VDA loss to be set off against other income or carried forward.

What tax rate applies?

The department's ITR-2 FAQ says VDA gains are taxed at 30% plus applicable surcharge and 4% cess under Section 115BBH. Only the cost of acquisition is deductible.

How do I claim the 1% TDS?

Under Section 194S the buyer, usually the exchange, deducts 1% TDS (Section 194S). The department's ITR-2 FAQ says to use Form 26AS to verify TDS, and you claim it in the return. Check that the amounts match your exchange statements.

Does every swap need its own row?

The form says every transfer is a transaction, so crypto-to-crypto swaps count. Frequent traders can end up with hundreds of rows, which is why many people use a tax tool or a chartered accountant.