Answer

1. F

   Facts

   Swapping BTC for ETH is not a neutral event. When you swap one VDA for another, the IT department treats it as: (1) selling the first VDA at current market price in INR, and (2) buying the second VDA. The "sale" of the first VDA creates a taxable event, 30% tax on the gain.

2. P

   Provisions and law

   • IT Act, Sec 194 (old 115BBH) | CBDT Circular 3/2023
3. A

   Analysis

   Example: You bought 1 BTC at ₹20L. You swap it for ETH when BTC = ₹40L. You haven't received INR, but you have a ₹20L VDA gain. Tax = ₹6L (30%). No TDS from the exchange on this (Sec 393, Income-tax Act 2025 (old Sec 194S) applies to INR withdrawals, not crypto-to-crypto on unregulated exchanges). But you must still report it. On Indian exchanges: Exchange deducts 1% TDS on the INR equivalent of every trade above ₹50K. This appears in your Form 168 (old Form 26AS). If you don't file a return declaring these gains, it will be cross-checked.

4. C

   Conclusion

   Talk to a Savvy for the exact next step on your case.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.