# Crypto & VDA Tax Filing

> Crypto, NFTs and other virtual digital assets are taxed at a flat 30% plus cess on each transfer, with only the cost deductible and no set-off of losses. Every transfer is reported in Schedule VDA of ITR-2 or ITR-3, and the 1% TDS deducted by Indian exchanges must match your AIS. Trades on foreign exchanges are still taxable, and holdings there may need foreign asset disclosure.

Practice: Trader & Investor Tax — https://www.industax.com/services/investor-tax/

The tax department receives exchange data and TDS records, and mismatches between AIS and the return are a frequent source of notices. We reconcile trade-level data from each exchange and wallet against AIS before filing.

Swaps between tokens, payments in crypto, airdrops and staking rewards each need specific treatment; we document the basis used so it can be defended.

## Key facts

| Item | Detail |
| --- | --- |
| Rate | 30% + cess (Section 115BBH) |
| Deduction | Cost of acquisition only |
| Losses | No set-off or carry-forward |
| TDS | 1% under Section 194S |
| Schedule | VDA in ITR-2/ITR-3 |

## Who needs this

- Crypto investors and traders
- Users of foreign exchanges and DeFi
- Recipients of crypto tax notices

## What's included

- Exchange and wallet data reconciliation
- Schedule VDA preparation
- TDS/AIS matching
- Notice support

## Documents

- Exchange trade histories
- Wallet addresses and transactions
- AIS/Form 26AS

## Process

1. **Collect** — All exchange and wallet data gathered.
2. **Reconcile** — Trades matched with TDS and AIS.
3. **File** — Schedule VDA reported accurately.

## FAQs

### Is a crypto-to-crypto swap taxable?

Yes. Swapping one VDA for another is a transfer of the first, taxable at 30% on the gain, with TDS obligations where applicable.

### How are staking rewards and airdrops taxed?

They are generally taxed as income when received (often under 'other sources' at slab rates or as a gift where applicable), and then at 30% on transfer, using the value at receipt as cost where allowed.

### I got a notice for crypto trades. What now?

Compare the notice with your exchange data and AIS, then file a response or updated return. We prepare reconciliations and replies.

## Official sources

- Income Tax e-Filing portal: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/services/investor-tax/crypto-vda-tax-filing
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.