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02

Gather transaction history from all exchanges

Collect complete records from every platform: domestic exchanges, foreign exchanges, DeFi wallets, and peer-to-peer transactions. Date, amount, price, and cost basis are all required.

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03

Calculate cost basis carefully

Only purchase price is deductible. Gas fees, exchange commissions, and trading fees are NOT tax-deductible, so your cost basis is strictly acquisition cost.

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04

Document every buy, sell, and swap

From 1 April 2026, line-by-line reporting is mandatory. One missing transaction or calculation error can trigger a ₹200/day penalty up to ₹50,000.

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Foreign holdings must be declared in Schedule FA

Crypto on foreign exchanges requires disclosure in Schedule FA with no minimum exemption. Income from foreign platforms is fully taxable in India.

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06

File ITR-2 or ITR-3 with Schedule VDA before deadline

Salaried individuals use ITR-2; business owners use ITR-3. Missing the ITR deadline triggers penalties and interest. Start compiling now—filing later under pressure increases errors.

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