canainitsavla.com

File ITR for Cryptocurrency – Complete Guide to Crypto Income Tax Return Filing

Step-by-Step ITR Filing Service for Cryptocurrency Traders, Investors & VDA Income Earners in India

Filing an income tax return (ITR) for cryptocurrency is a mandatory legal obligation for every Indian resident who has traded, invested in, or earned income from Virtual Digital Assets (VDAs) during the financial year. Since the Finance Act 2022, crypto income is separately categorised under Section 115BBH, taxed at a flat 30% rate, and must be disclosed in the dedicated Schedule VDA of the ITR. Failure to file or incorrect filing attracts scrutiny notices, defective return intimations under Section 139(9), and substantial penalties under Section 270A for under-reporting — penalties that can be far greater than the original tax due.

Our specialists provide a comprehensive end-to-end ITR filing service for cryptocurrency users — from collecting and compiling transaction data across all exchanges and wallets to completing Schedule VDA, reconciling TDS, disclosing foreign crypto holdings, and filing the return online. This service connects with our Crypto Tax Filing, Crypto Consulting Services, TDS on Crypto P2P Transactions, and New Income Tax Forms 2026.

Our ITR Filing Services for Cryptocurrency

Crypto Transaction Data Compilation

Complete compilation of all VDA transactions from Indian exchanges (WazirX, CoinDCX, Zebpay, etc.), international platforms (Binance, Coinbase, Bybit), DeFi protocols, and personal wallets — covering every buy, sell, swap, and transfer.

ITR Form Selection & Filing

Selection of the correct ITR form (ITR-2 for investors without business income; ITR-3 for active traders with business income) and complete ITR preparation and online filing on the Income Tax e-filing portal.

Schedule VDA Completion

Accurate population of all required fields in Schedule VDA — including head of income, VDA type, acquisition date and cost, transfer date and consideration, and gain/loss — for every VDA category traded during the year.

AIS/TIS & TDS Reconciliation

Reconciliation of all VDA transactions and TDS under Section 194S with Annual Information Statement (AIS), TIS, and Form 26AS data — ensuring complete consistency between your ITR disclosures and department records.

Combined ITR with Other Income

ITR filing incorporating crypto income alongside salary, capital gains from stocks, rental income, and other sources — with accurate overall tax computation, advance tax credit, and refund/balance tax determination.

Schedule FA – Foreign Crypto Assets

Disclosure of cryptocurrency held on foreign exchanges in Schedule FA with peak balance, year-end balance, and income — ensuring full compliance with foreign asset reporting requirements and the Black Money Act.

Why Filing ITR for Cryptocurrency Correctly Matters

  • The Income Tax Department receives VDA transaction data from exchanges through AIS — unreported crypto income creates a mismatch that triggers automatic scrutiny
  • The ITR cannot be filed on ITR-1 or ITR-4 if you have VDA income — incorrect form selection results in a Section 139(9) defective return notice
  • All VDA transactions must be disclosed — including loss-making trades, swaps, and staking rewards — not just profitable sales
  • TDS deducted by exchanges under Section 194S must be correctly claimed as a credit — omission results in paying tax you have already had deducted
  • Foreign exchange crypto holdings not disclosed in Schedule FA attract Black Money Act penalties that can be multiple times the tax due
  • Timely filing before July 31 prevents late filing fees under Section 234F and preserves your right to file a revised return if needed

Frequently Asked Questions – Filing ITR for Cryptocurrency in India

Is it mandatory to file ITR if I only have cryptocurrency income?
Yes. If your total income (including VDA income) exceeds the basic exemption limit (Rs. 2.5 lakh for individuals below 60 / Rs. 3 lakh for senior citizens), ITR filing is mandatory. Additionally, if TDS has been deducted on your VDA transactions under Section 194S and you want to claim it as a credit (including for a refund), you must file an ITR. Even if your income is below the exemption limit, it is advisable to file a nil return to create a compliance record and prevent future notices based on the VDA transaction data the department receives from exchanges through AIS.
What information do I need to provide for cryptocurrency ITR filing?
For complete and accurate crypto ITR filing, you need: transaction reports from all exchanges (typically downloadable as CSV or Excel from exchange profiles); wallet transaction histories for non-exchange VDA holdings; details of all P2P transactions including dates, amounts, and counterparty information; staking reward and airdrop records with market value at receipt; Form 26AS and AIS to verify TDS credits; details of any VDA held on foreign exchanges (for Schedule FA); and your complete income details from other sources (salary, interest, rental) to prepare the full ITR. Our professionals guide you on exactly what to compile from each platform.
What is the treatment of crypto income if it is classified as business income?
If your frequency of crypto trading is high enough that it constitutes a business activity (typically for full-time traders with very high trade volumes and turnover), the income may be treated as business income rather than Section 115BBH income. This is a nuanced classification — if treated as business income, the 30% flat rate may not apply and regular business income slab rates would apply, with the possibility of deducting business expenses. However, the Income Tax Department's guidance has been that all VDA transfers are covered by Section 115BBH regardless of whether they are business income. Professional advice on this classification is recommended for high-frequency traders.
Can I claim a refund if TDS on crypto was higher than my actual tax liability?
Yes. If TDS deducted on your VDA transactions under Section 194S (typically 1% by the exchange) exceeds your total income tax liability for the year, you are entitled to a refund of the excess TDS. To claim this refund, you must file an ITR declaring all income and computing your actual tax liability. The ITR will show the excess TDS as a refund due. For example, if your total tax liability is zero (because your total income is below the exemption limit), the entire TDS deducted under Section 194S is refundable. Refunds are processed by the department after ITR filing and are credited directly to your bank account.
What is the deadline for filing ITR with cryptocurrency income?
The ITR filing deadline for individuals with crypto income (who are not required to get a tax audit) is July 31 of the assessment year (July 31, 2026 for FY 2025-26). For individuals whose crypto trading constitutes business income and whose business turnover exceeds the Section 44AB audit threshold (Rs. 1 crore for business), the deadline is October 31, 2026. A belated return can be filed up to December 31, 2026 with late filing fees under Section 234F (Rs. 1,000 if total income is up to Rs. 5 lakh; Rs. 5,000 if above Rs. 5 lakh). After December 31, only a revised return for an already-filed return can be submitted.

Have Crypto Income? File Your ITR Correctly with Our Specialists.

We compile your complete transaction data, prepare Schedule VDA, and file your ITR with full compliance — on time and error-free.

Contact Us Today

F.A.Q.

It includes all yearly requirements such as filings, actuarial valuation, audits, and maintaining proper records.

Yes, regular compliance is required to maintain approval and tax benefits.

It helps determine the exact gratuity liability and required funding for the trust.

 

Yes, trusts must file necessary returns and maintain financial records as per regulations.

Non-compliance can lead to penalties, loss of tax benefits, or cancellation of approval.

Trustees and the employer are responsible for ensuring proper compliance.