Krypto Sales: Your Guide for Reporting Digital Assets in ITR

Copyright © HT Digital Streams Limit all rights reserved. Shipra Singh 2 min Read 09 Sept 2025, 02:33 PM IST Different types of transactions are reported under different sections. (Beeld: Pixabay) Summary confused about reporting cryptocurrency sales and trades in your ITR? Here is how you can file income tax returns without attracting fines. New -delhi: Report virtual digital assets (VDAs) on your tax return is not easy. Cryptocurrency-related transactions require scriptural reporting, which means that each transaction must be reported separately. Different types of transactions are also reported under different sections. Spot-trade, pear-to-peer (P2P) transfers and the sale of a VDA, including the sale of INR or for another coin, are all reported under Schedule VDA. Cryptos received as gifts, air drops and benefits are reported under ‘income from other sources’. However, if the gifted coins, air drops and cryptos are sold as a reward in the future, they will be treated as a sale and reported under schedule VDA. There is a third category of crypto futures with an INR margin, which means that the trades are settled in INR instead of crypto. These transactions are treated as business income, as no crypto is actually bought or sold. They must be reported under ‘Income from Business and Occupation’ in ITR-3. Reporting process taxpayers have the option to submit online into the e-filing portal or offline through the Excel Nut. The latter is useful if you have a large part of crypto transactions to sign up, as the submission of each can be manually online. With the Excel Aid Program, you can copy and paste all transactions at one time. However, chartered accountant Sonu Jain warns that the submission of ITR through the offline utility is complex and should be used if you have little or no other income to report, except the cryptocurrency transfers. First, choose the right form between ITR-2 and ITR-3 in the online process. ITR-3 is for people with business revenue, which include INR-marginated futures, while ITR-2 is for others. Detailed reporting is done via two schedules: Schedule VDA and schedule CG (capital gains). In Schedule VDA, each crypto sales must be recorded separately – you enter the acquisition date, sales date, acquisition costs and the sales value. Note that you cannot deduct expenses, and that only actual purchase and sales values ​​are allowed. The instrument then calculates net profits or losses based only on these values. If you sell a loss, the utility shows zero income because losses of VDAs cannot be compensated. Plan CG to the population of VDA, the data flows in schedule CG, specifically under the section titled ‘Income from the transfer of virtual digital assets’. Reconcile the total profits in this section. From there, you have to go to Section F to report crypto profits quarterly. For example, say that you sold a few coins in May 2024 and a few in November 2024. These two transactions must be reported in quarters to 15/6 and 16/9 to 15/12 respectively. This collapse helps tax authorities to calculate interest on any deficit in prepaid tax payments if you have underpaid during the year. As a last step, make sure that any tax deducted from the source (TDS) on your VDA income is properly adjusted against your total tax liability. This ensures that you do not pay too much or underpaid if your final tax is. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Cryptocurreny #Trs #Tax Read Next Story