How to report crypto in ITR, Schedule VDA, Section 115BBH, and slab vs flat tax comparisons in India

Описание: Here’s a complete breakdown of how to report crypto in your ITR, how Schedule VDA works, what Section 115BBH means, and how it compares to slab vs flat tax in India for AY 2025–26. 🧾🇮🇳


1. How to Report Crypto in ITR

Step Action
1️⃣ Classify income: Capital Gains, Business Income, or Other Sources
2️⃣ Choose correct ITR form: ITR-2 capital gains, ITR-3 business
3️⃣ Fill Schedule VDA: Report each crypto transaction or summary
4️⃣ Declare foreign holdings: Use Schedule FA if using foreign exchanges
5️⃣ E-verify: Complete filing by verifying within 30 days


2. Schedule VDA – What to Report

Schedule VDA is mandatory if you’ve traded, sold, swapped, or received crypto/NFTs.

Field What to Enter
Date of Acquisition When you bought/received the crypto
Date of Transfer When you sold/sent the crypto
Head of Income Capital Gains or Business Income
Cost of Acquisition Purchase price in INR
Consideration Received Sale price in INR

💡 Only cost of acquisition is allowed as deduction under Section 115BBH.


3. Section 115BBH – Crypto Tax Rule

This section governs taxation of Virtual Digital Assets VDAs like crypto and NFTs.

Flat 30% tax on gains from crypto transfers
No deductions allowed (except cost of acquisition)
No set-off or carry forward of crypto losses
4% cess applies on tax liability
Applies to both capital gains and business income from VDAs


4. Slab vs Flat Tax – Crypto Comparison

Criteria Business Income Slab VDA Income Flat 30%
Tax Rate Based on slab 5%–30% 30% + 4% cess = 31.2%
Loss Set-Off Allowed? ✅ Yes against other business income ❌ No
Deductions Allowed? ✅ Yes, expenses, fees, infra costs ❌ Only cost of acquisition
ITR Form ITR-3 ITR-2 or ITR-3 with Schedule VDA
Filing Complexity Moderate , books, audit if turnover more than₹10cr Simple just report trades in Schedule VDA

🧠 If you’re a frequent trader, the business route may offer lower tax if you have losses or expenses. But if you’re a casual investor, the VDA route is simpler but harsher.

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