Crypto ITR filing - India

Service Description

Crypto ITR Filing – India

This service provides end-to-end Income Tax Return (ITR) compliance for individuals and entities engaged in Virtual Digital Asset (VDA) transactions in India. It is designed for investors, traders, founders, employees receiving token compensation, and high-net-worth individuals dealing in cryptocurrencies, NFTs, DeFi, staking, and cross-border digital asset transactions.

The engagement ensures accurate computation of income under Section 115BBH, compliance with Section 194S (TDS on VDA), appropriate disclosure in Schedule VDA, foreign asset reporting (Schedule FA where applicable), and alignment with applicable provisions of the Income-tax Act, 1961, CBDT notifications, and reporting requirements.

Outcome: Clients receive a legally compliant, technically robust ITR with defensible computation workings, reconciliation of exchange data, and mitigation of scrutiny risk.

Service Offerings

Crypto Transaction Reconciliation & Tax Computation

• Consolidation of transactions across Indian and foreign exchanges, wallets, DeFi platforms, and OTC trades

• Classification of transactions (buy/sell/swap/airdrop/staking/mining/NFT)

• Computation of gains under Section 115BBH (30% tax on VDA income)

• Treatment of loss restrictions (no set-off except as permitted; no carry forward)

• Verification of TDS under Section 194S

• Reconciliation with Form 26AS and AIS/TIS

• Foreign remittance and FEMA exposure review (where relevant)

Deliverable: Detailed working paper, capital gain statement, and Schedule VDA-ready computation sheet.

ITR Preparation, Disclosure & Risk Review

• Selection of appropriate ITR form (ITR-2 / ITR-3 / ITR-5 as applicable)

• Reporting under Schedule VDA

• Foreign exchange and foreign asset disclosure (Schedule FA, if applicable)

• Review of classification as Business Income vs. Capital Gains

• Advisory on compliance gaps (missed TDS, prior-year corrections, ITR-U filing)

• Drafting of computation note for scrutiny preparedness

Deliverable: Filed ITR with computation note and advisory memo on risk exposure.

Key Service Differentiators

Technical Specialisation in Crypto Taxation Deep domain expertise in VDA taxation, DeFi mechanics, token compensation structures, and cross-border crypto flows, beyond standard tax preparer capability.

Forensic Reconciliation Approach Transaction-level reconciliation using specialised crypto accounting tools (e.g., API-based extraction and wallet-level validation), reducing mismatch risk with AIS/TIS data.

Scrutiny-Ready Documentation Every filing is supported with structured computation sheets, legal references, and explanatory notes to defend classification and tax treatment during assessment proceedings.

Ideal Client Profile

Active Crypto Traders Individuals executing high-volume trades across multiple exchanges requiring accurate gain computation and TDS reconciliation.

Startup Founders & Employees Receiving Tokens Persons receiving token compensation, ESOP-linked tokens, airdrops, staking rewards, or liquidity pool income.

High Net-Worth Investors & NRIs Clients with foreign exchange accounts, offshore wallets, cross-border VDA transactions, and Schedule FA reporting requirements.