Compile transaction history from every exchange (Kraken, CoinDCX, WazirX). Download TDS certificates if transfers exceeded ₹10,000—you need these for ITR Schedule TDS.
Crypto investors cannot file ITR-1 (the simplest form). Salaried filers use ITR-2; self-employed or business owners use ITR-3. Both require Schedule VDA for crypto transactions.
Line-by-line entry required: acquisition date, cost, sale date, proceeds, profit/loss. One mistake risks an assessment notice. Use tax software (Cryptact, TaxFetch) to automate and verify.
Crypto on foreign exchanges (Coinbase, Kraken, Bybit, etc.) must be disclosed in Schedule FA with zero minimum threshold—even ₹1,000 requires reporting.
If you lost money on altcoins, those losses are trapped—they cannot reduce your Bitcoin gains or salary tax. Plan for this when deciding when to realize losses.
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