By Niveshkarlo
September 28, 2026
Yes. Crypto falls under Virtual Digital Assets (VDAs). Income arising from the transfer of VDAs is taxed at a flat 30%, plus applicable surcharge and 4% cess. The special VDA tax rules apply to crypto assets covered under the Income Tax Act.
The calculation is different from regular investments. For VDA transfers, the taxable income is generally calculated after deducting the cost of acquisition. Other expenses are not deductible under the special VDA taxation provisions, and losses from VDA transfers cannot be set off against other income or carried forward.
Crypto transactions can involve TDS too. A 1% TDS provision applies to transfers of VDAs to resident sellers, subject to the applicable conditions and thresholds. This TDS is separate from your final tax liability. Check your tax records and Form 26AS/AIS before filing.
The Income Tax Department provides a dedicated Schedule VDA in ITR-2 and ITR-3 for reporting income from VDA transfers. Transactions need to be reported in the applicable VDA schedule.
Before filing, collect: • Exchange transaction statements • Buy and sell dates • Purchase cost • Sale value • TDS details • Wallet transfer records • Bank statements • Transaction history from different platforms Accurate records make tax calculation and verification easier.