Every crypto transaction must be reported to the IT Department. Here's how to file Schedule VDA correctly — and avoid getting a tax notice.
30% flat tax on crypto profits (+ 4% cess = 31.2% effective). 1% TDS deducted on every transaction above ₹50,000. NO deduction for losses (you can't reduce profit with crypto losses from other trades). No exemption under any section.
Use ITR-2 or ITR-3 (not ITR-1). Go to Schedule VDA: enter each crypto sale. Date of purchase, cost of acquisition (INR), date of sale, sale value (INR). Profit = sale value minus cost only. No broker charges or platform fees deductible.
The exchange deducts 1% TDS and reports it to the IT Dept. This appears in Form 26AS. When filing ITR, claim this TDS as advance tax paid — it reduces your net tax payable. Always match 26AS with your records before filing.
Koinly or CoinTracker: Import transactions from CoinDCX, WazirX, and wallets. They generate Schedule VDA-ready reports. Cost: ₹3,000–₹8,000/year. Worth every rupee — manual calculation for 100+ trades is error-prone. File before July 31 to avoid penalty.
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