#schedulevda

ITR for Cryptocurrency in India 2026: Schedule VDA Filing Guide | CryptoWire

Crypto in India is treated as a Virtual Digital Asset (VDA) under Section 2(47A) of the Income Tax Act. Any income from transferring a VDA selling, swapping, or spending it must be declared in your Income Tax Return.

The framework was introduced in Budget 2022 and has only tightened since.

The rate is blunt. Under Section 115BBH, profits are taxed at a flat 30% plus a 4% health and education cess, regardless of your income slab or holding period. There is no distinction between short-term and long-term gains.

(Source: Koinly, CoinDCX)

Which ITR form should I use for crypto?

Use ITR-2 if you hold crypto as an investment and report capital gains.

Use ITR-3 if you trade actively and treat crypto as business income. Both forms contain Schedule VDA, where each transaction is reported separately aggregated or summary entries are typically rejected.

(Source: Patron Accounting, KoinX)

How do I report crypto in Schedule VDA?

Schedule VDA requires transaction-wise detail: date of acquisition, date of transfer, cost of acquisition, sale consideration, and the resulting income.

Only the purchase price is deductible gas fees, exchange fees and brokerage costs cannot be claimed. (Source: Patron Accounting)

Schedule VDA reporting became mandatory from FY 2025-26 onwards. Before filing, download Form 26AS and your AIS, then match the 1% TDS recorded under Section 194S against your declared transactions. A mismatch can trigger a defective-return notice. (Source: KoinX)

What is the 1% TDS on crypto (Section 194S)?

Section 194S levies a 1% TDS on VDA transfers, effective since 1 July 2022. The threshold is ₹50,000 a year for individuals without business income (specified persons) and ₹10,000 for others.

The TDS is not an extra tax. It is a credit you adjust against your final 30% liability, or claim as a refund when filing. Indian exchanges such as CoinDCX deduct it automatically and report it to users.