Answer

ITR

Crypto trading in the return

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  1. Facts

    Income from transfer of virtual digital assets is taxed at 30% under Sec 115BBH (now Sec 194), allowing only the cost of acquisition. Losses cannot be set off against other income or carried forward.

  2. Provisions and law

    • Sec 115BBH, Income-tax Act 1961 (now Sec 194, Income-tax Act 2025)Income from transfer of virtual digital assets is taxed at 30% with no deduction except cost
    • Sec 28, Income-tax Act 1961 (now Sec 26, Income-tax Act 2025)Profits and gains of business or profession are taxable

  3. Analysis

    Report each transfer in Schedule VDA. Example: gains of ₹1 lakh on one coin and a loss of ₹40,000 on another; tax is on ₹1 lakh, and the ₹40,000 loss is ignored. TDS of 1% deducted by exchanges is claimed from Form 26AS (now Form 168). Use ITR-3 if you also have business income.

  4. Conclusion

    1. Download exchange transaction reports
    2. List each transfer with cost and sale value
    3. Report in Schedule VDA at 30%
    4. Claim TDS from Form 26AS

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