How is crypto income taxed in India?

Income from transfer of virtual digital assets is generally taxed at 30% plus applicable surcharge and cess under section 115BBH, subject to statutory conditions.

Which ITR form is used for crypto income?

ITR-2 may apply where VDA income is reported as capital gains and there is no business income. ITR-3 is usually reviewed when VDA activity is treated as business income.

Can crypto loss be set off against other income?

VDA losses are restricted and should not be casually set off against salary, business income, capital gains or other income without professional review.

Reviewed for current filing season: 9 June 2026

Crypto and VDA income tax filing for AY 2026-27

Crypto assets, NFTs and other virtual digital assets can create special tax reporting in your ITR. For AY 2026-27, VDA income needs careful classification, transaction-level details, TDS reconciliation and the correct ITR form.

Quick answer: VDA gains are generally taxed at a special 30% rate plus applicable surcharge and cess. Do not mix VDA loss with regular capital gains or salary income without checking the rules.

What counts as VDA income?

Sale or exchange of crypto tokens.
Transfer of NFTs or other notified virtual digital assets.
Rewards, airdrops, mining, staking or business-style receipts, depending on facts.
Foreign exchange trades or wallet transactions where Indian tax reporting applies.

Examples

One-time crypto sale

You bought crypto for Rs. 1,00,000 and sold it for Rs. 1,40,000. The Rs. 40,000 gain needs VDA reporting and tax calculation.

Multiple exchange trades

You traded on more than one platform. Reconcile exchange reports, wallet transfers, TDS under 194S and AIS entries before filing.

Crypto plus salary

A salaried taxpayer with crypto gains usually cannot treat the whole return as a simple salary-only ITR. Form selection must be reviewed.

Which ITR form should be used?

ITR-2: commonly reviewed when the taxpayer has salary, house property, capital gains, VDA gains and no business/profession income.
ITR-3: commonly reviewed when VDA activity is connected with business/profession, frequent trading, or other business income.
ITR-1 and ITR-4: usually not suitable for VDA reporting where the form conditions exclude such income or schedules are not available.

Documents to keep ready

Exchange-wise transaction report.
Wallet transfer history and bank statements.
TDS certificate or Form 26AS/AIS entries for section 194S where applicable.
Cost of acquisition and sale value for each transfer.
Details of any foreign platform or foreign asset reporting concern.

Get expert-assisted filing

All India ITR can review your exchange statements, AIS/TIS, TDS credits, VDA schedules and correct ITR form before filing.

Get capital gains and crypto filing help

Related current ITR guides

File ITR Online AY 2026-27 filing steps and examples Old vs New Regime Compare slabs, deductions and examples Tax & Refund Calculator Estimate tax, refund or extra payable AIS/Form 26AS Mismatch Fix TDS, income and refund mismatches Belated, Revised & ITR-U Know which correction route applies Which ITR Form? ITR-1, ITR-2, ITR-3 or ITR-4

Sources reviewed

Income Tax Department ITR-2 FAQ

This guide is for general understanding. VDA tax treatment can change based on transaction facts, platform records, business classification and foreign asset reporting.