All virtual digital asset gains in India are taxed at a flat 30% plus cess, regardless of holding period or income slab. There is no preferential rate for long-term holdings of crypto.
Exchanges were required to begin collecting 1% Tax Deducted at Source (TDS) from April 1, 2026 on transactions exceeding INR 50,000 per year for specified individuals and HUFs.
All crypto transactions must be reported in Schedule VDA of the ITR. ITR-1 and ITR-4 cannot be used for crypto income. ITR-2 deadline was July 31; ITR-3 deadline is August 31 for non-audit cases.
Exchanges that fail to report crypto transactions face fines including 200 rupees per day per missing statement and 50,000 rupees for incorrect information. Investors should ensure their exchange has filed required statements.
Collect all transaction records from your exchange, calculate gains using cost basis tracking, and file ITR-3 by August 31 to avoid penalties and legal complications.
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