Crypto gains are reported trade by trade in Schedule VDA of ITR-2 (ITR-3 if you trade as a business) and taxed at a flat 30% plus cess under Section 115BBH, with only the cost of acquisition deductible and no set-off of losses. We build the computation from your exchange and wallet files, match the 1% TDS in AIS and file your AY 2026-27 return, now as a belated return by 31 December 2026.
| Item | Rule for FY 2025-26 |
|---|---|
| Tax on gains | 30% flat under Section 115BBH, plus surcharge where applicable and 4% cess, whatever the holding period |
| Deductions | Only the cost of acquisition; no fees, no indexation, no Chapter VI-A deduction against the gain |
| Losses | Cannot be set off against any income, including gains on other coins, and cannot be carried forward |
| TDS | 1% under Section 194S on the sale value, deducted by the exchange or buyer, credited in Form 26AS and AIS |
| Return form | ITR-2 (investor) or ITR-3 (business), with every transfer in Schedule VDA |
| Due date status | ITR-2 31 July 2026 and non-audit ITR-3 31 August 2026 have passed; belated return by 31 December 2026 |
A salaried investor buys Bitcoin for ₹2,00,000 and sells it for ₹3,00,000 in FY 2025-26. He also sells Ethereum bought for ₹1,50,000 for ₹1,00,000. The Indian exchange deducts 1% TDS on both sales, ₹4,000 in all.
| Step | Amount |
|---|---|
| Gain on Bitcoin | ₹1,00,000 |
| Loss on Ethereum | ₹50,000, ignored: it cannot reduce the Bitcoin gain |
| Tax at 30% on ₹1,00,000 | ₹30,000 |
| Cess at 4% | ₹1,200 |
| Less: TDS under Section 194S | ₹4,000 |
| Tax still payable before filing | ₹27,200 |
Illustrative figures. Surcharge applies only where total income exceeds ₹50 lakh. His salary is taxed separately at slab rates, and the 30% gain does not get the Section 87A rebate.
| Payer | No TDS if total paid in the year is up to | Rate |
|---|---|---|
| Specified person: individual or HUF with no business income, or with turnover up to ₹1 crore (business) or ₹50 lakh (profession) | ₹50,000 | 1% |
| Anyone else, including exchanges | ₹10,000 | 1% |
| Seller has not given a PAN | Same thresholds | 20% under Section 206AA |
On an Indian exchange, the exchange normally deducts the TDS and it shows up in your AIS. On a foreign exchange or a peer-to-peer trade, the buyer is responsible, so TDS is often missing and the full tax is payable by you. For transfers from 1 April 2026, the same 1% falls under Section 393(1) of the Income-tax Act, 2025.
If a mismatch notice has already arrived, our income tax notice team prepares the reply. Salaried investors with only small crypto trades can also start from salaried ITR filing.
Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.
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Every price above is a professional fee, excluding GST and government charges. 50% upfront, 50% on delivery.
Download transaction history from all exchanges (WazirX, CoinDCX, Binance, Coinbase, etc.) and wallets.
CA computes the gain on each transfer: sale value minus cost of acquisition only, using one consistent cost method (such as FIFO) with working papers. 30% flat tax; a loss on a VDA cannot be set off against any income, including gains on other VDAs, and cannot be carried forward.
1% TDS under Section 194S is deducted by Indian exchanges or buyers (from 1 April 2026: Section 393(1), Table Sl. No. 8(vi) of the Income-tax Act, 2025). We match it with Form 26AS / AIS and claim it as credit against your tax; only any excess is refunded.
ITR-2 (individual) or ITR-3 (business). Schedule VDA + Schedule CG (if any non-VDA capital gains).
Tell us your requirement, a CA will call you in 30 minutes.
From 1 April 2022, crypto / VDA gains are taxed at 30% flat rate. No indexation, no deductions other than cost of acquisition.
A VDA loss cannot be set off against any income — not salary, business, other capital gains, or gains on other VDAs — and cannot be carried forward to later years.
From 1 July 2022, 1% TDS applies to payments for the transfer of a VDA (above the threshold). We track it and claim it as credit in your return; only tax paid in excess of your liability is refunded.
If your crypto trading is treated as a business, a tax audit applies when turnover exceeds ₹1 crore (₹10 crore where cash receipts and payments are each within 5%). We coordinate with auditors.
