How do you report crypto in your ITR in India?
Crypto ITR reporting in India uses Schedule VDA in ITR-2 or ITR-3, listing each transfer's dates, cost and sale value, and claiming 1% TDS from Form 26AS.
To report crypto in your ITR in India, you list every transfer of a virtual digital asset (VDA) in Schedule VDA, a dedicated part of the income tax return. The schedule works out income per transaction, and the positive amounts are taxed at a flat 30% plus surcharge and cess. The tax rules themselves are explained in how crypto is taxed in India.
Which ITR do you use for crypto, ITR-2 or ITR-3?
The Income Tax Department says Schedule VDA is part of ITR-2, ITR-3, ITR-5, ITR-6 and ITR-7. ITR-1 and ITR-4 do not support VDA income, so a salaried person who sold any crypto in the year cannot use the simpler forms.
The choice between ITR-2 and ITR-3 depends on the head of income. The department's VDA page says the taxable amount can be capital gains or business income. Guides from tax practitioners say people holding crypto as an investment generally use ITR-2, while those whose trading is treated as a business use ITR-3. The rate is 30% either way.
How do you fill in Schedule VDA?
The schedule asks for one row per transfer, with these details:
- date of acquisition
- date of transfer
- head of income (capital gains or business income)
- cost of acquisition
- consideration received
Income is the consideration minus the cost. If a row shows a loss, it is entered as nil, because no loss on a VDA can be set off and no other expense can be deducted. The total of the positive amounts is carried to the rest of the return. Exchange statements are the usual starting point, as covered in how to download your crypto transaction history.
How do you claim the 1% TDS on crypto in your ITR?
Under section 194S, 1% is deducted when a VDA is bought from an Indian resident, above yearly limits of 50,000 rupees for many individuals and 10,000 rupees for other payers. The deducted amount appears in Form 26AS against your PAN, and exchange-reported transactions appear in the Annual Information Statement (AIS). The TDS is claimed in the return like other TDS, and it counts as a credit against your total tax, not a final tax.
Mismatches between the return and exchange data can be flagged automatically. Trades on peer-to-peer or foreign platforms still need to be declared even if they do not show in Form 26AS or AIS. Income missed in an earlier year can be reported through an updated return (ITR-U).
Will crypto reporting in the ITR change?
The Income-tax Act, 2025 took effect on April 1, 2026, replacing the 1961 Act. As of November 2026, Schedule VDA continues in the new return forms, the 30% rate and 1% TDS are unchanged, and a new provision requires reporting entities to file crypto transaction statements. India also plans to join the OECD crypto reporting framework by April 2027, explained in what is CARF crypto reporting. Platform rules are in how crypto is regulated in India.
Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.
This guide explains how things work. It is not financial, legal or tax advice. Last updated .