ITR
Reporting crypto gains in ITR-2
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Income from virtual digital assets is taxed at 30% plus cess under Sec 115BBH. Only the cost of acquisition is deductible, and a loss on one asset cannot be set off against any gain, even on another crypto. Each transfer goes in Schedule VDA.
Provisions and law
- Sec 115BBH (now Sec 194)Income from crypto and other virtual digital assets taxed at 30%, with no deduction other than cost and no loss set off
Analysis
If you made ₹1,00,000 on one coin and lost ₹40,000 on another, tax is on ₹1,00,000, which is ₹31,200 with cess. The 1% TDS deducted by the exchange appears in Form 26AS and is claimed as credit. Report each transfer with dates, cost and sale value in Schedule VDA. Crypto losses cannot be carried forward.
Conclusion
- Download the exchange's tax report.
- List each transfer with cost and sale value.
- Fill Schedule VDA and compute 30% tax on gains.
- Claim the TDS credit.
A Savvy can do this for you
Income tax return with capital gains, ITR-2
₹2,499
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.