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ITR filing: Accurate reporting ensures compliance with tax regulations and prevents future penalties. Crypto investors should ensure all transactions are well-documented and reported in the appropriate ITR form.
By Anshul March 22, 2025, 11:11:56 AM IST (Published)
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Filing an Income Tax Return (ITR) requires accurate reporting of all income sources, including crypto gains. Taxpayers must follow these steps to file their returns correctly.
Steps to file ITR
Visit the Income Tax e-filing portal – Log in using your PAN and password.
Select the applicable ITR form – Most salaried individuals use ITR-1, while those with capital gains or business income must opt for ITR-2 or ITR-3.
Enter income details – Include salary, capital gains, interest income, and other earnings.
Verify tax deductions and TDS – Check Form 26AS and AIS for accuracy.
Submit and verify – Use Aadhaar OTP, net banking, or a physical verification method.
Reporting crypto gains in ITR
Crypto investors must report gains just like stock market earnings.
Edul Patel, Co-founder & CEO of Mudrex, explains:“Similar to investors reporting gains from the equities market, one must also report gains from crypto investments. To comply with India’s crypto tax norms, choose the correct ITR form—ITR-2 for capital gains or ITR-3 if trading is business income.”
Key points for crypto/VDA reporting:
Maintain records of transactions, including date, cost, and profit/loss.
Calculate gains by deducting the acquisition cost from the selling price.
A flat 30% tax applies on net gains without any set-off against other income.
Verify TDS deductions through Form 26AS and resolve discrepancies.
Accurate reporting ensures compliance with tax regulations and prevents future penalties. Crypto investors should ensure all transactions are well-documented and reported in the appropriate ITR form.
