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By Michelle Legge • Head of Crypto Tax Education

Updated Jan 3, 2024

 This article has been fact checked and reviewed as per our editorial policy.

How to Report & Pay Crypto Tax in

India in 2024
Sign up and connect to a crypto tax calculator

Download your crypto tax report

Log into the Income Tax Portal and start your ITR-2

Report your capital gains in Schedule VDA

Report other income from crypto

Complete your other required schedules

 Proceed to verification

FAQs

Learn how to report crypto to the Income Tax Department in your

ITR-2 & how to pay tax on crypto in India in our simple step-by-step
guide, including reporting crypto gains using the new Schedule VDA &
reporting income from crypto. 🇮🇳

Want to understand how crypto is taxed in India first? Our expert reviewed
India Crypto Tax Guide 2024 will get you up to speed fast with all the latest
guidance from the ITD.

The Income Tax Department (ITD) is clear that all income earned from crypto is
taxable as per the Income Tax Act. Not only this, but the ITD has been
proactively issuing tax demand notices to negligent crypto investors.

In other words, it’s very important to report your crypto gains and income
accurately and pay any taxes to avoid future penalties. However, due to a lack of
legislative clarity on crypto tax from the ITD, many investors are unaware of how
to calculate their crypto gains and income, nor which tax form they need to use
to file and what details they need to include.

Don’t panic, we’ve got the answers to all your questions. Here’s our step-by-step
guide on how to report crypto to the ITD and how to pay tax on crypto in less
than 10 minutes!

Sign up and connect to a crypto tax calculator

The first step in filing your India crypto taxes is to sign up or log in to an India
cryptocurrency tax calculator like Koinly and connect the exchanges, wallets,
and blockchains you use. You can find out more about getting set up with Koinly
in our help guide. Once you're connected, Koinly will calculate your gains,
losses, income, and more.

Important!

Before downloading, make sure you've got the right settings for India in your
Koinly setting, including the correct financial year, currency, and cost basis
method.

Download your crypto tax report

Once you're connected and you have your figures, you'll need to download your
report - so head over to the tax reports page to download your report. There are
three reports you might need:

Capital Gains Report (for capital gains and losses from disposals of
crypto)

Complete Tax Report (for income and expenses)

Other Gains Report (for derivatives and other PnL products)

Of course, if you only have capital gains or losses, or only income, you'll only
need the relevant reports. Once you have a paid Koinly plan, it's easy to
download your report, just select the report you want to download under 'pick a
report type' and hit 'download report'. You can download as many reports as
you need to with a paid plan.

Once you have the correct reports, you can get started with reporting and filing
your crypto taxes to the ITD. We'll be referring back to figures from these
reports later.

Important!

This guide will cover filing the ITR-2 Form. This form is applicable to all
taxpayers with capital gains except those with business income or taxpayers
who are a partner in any firm. Taxpayers with business income need to use
the ITR-3 Form instead.

Log into the Income Tax Portal and start your ITR-2
 Please note, that these instructions include screenshots from the 2023-2024
AY, we'll update these as soon as the portal opens for the 2024-2025 AY for
the 2023 - 2024 FY.

Your first step for reporting your crypto to the ITR is to log in to the Income Tax
Portal. If you're filing a tax return for the first time, you'll need to register first
(watch how to register).

Once you're logged in and on the home page, select e-file.

Now select Income Tax Returns, and then File Income Tax Returns

Next, select the assessment year as 2024-23 (Current AY for FY 2023-24).

Select the mode of filing as online and then continue.

Select start new filing. On the following page, select status as individual, and
then select continue.

Under the heading I know which ITR Form I need to file, select ITR-2. Go to the
next page and select let’s get started.
Enter your reason for filing an ITR. This will depend on your personal
circumstances. Once you've completed this, select continue.

On the next page, under the select schedule heading, select income.

Scroll down and check the box next to schedule VDA, then select continue.
Important!

Before we proceed to the next steps on filing, let's take a quick look at
examples of Koinly's reports. You can use the figures from your Koinly
report(s) to fill out your ITR-2. Capital gains (including other gains) will be
disclosed in Schedule VDA and Other Income will be disclosed in Schedule
Income from Other Sources.

As we mentioned above, you may need the capital gains report, other gains
report, and income summary section of the Complete Tax Report to report
your crypto in your ITR, depending on your transactions. Here are examples
of the reports:

1. Capital Gains Tax Report

2. Other Gains Tax Report

 3. Complete Tax Report (Income and Expenses Summary)

Report your capital gains in Schedule VDA

Once you've selected Schedule VDA, on the following page, select add another.
On the next page, you'll need to fill out the following details to add each crypto
trade to Schedule VDA (so you may need to repeat these steps multiple times to
cover all your transactions).

You can find all the information you need in your Koinly Capital Gains Tax
Report. We've added the column names Koinly uses in it's report in brackets, so
it's to figure out what information goes where:

Date of acquisition (Date acquired)

Date of Transfer (Date sold)

Head of Income (This asks whether you have capital gains or business
income and will depend on your personal financial circumstances)

Cost of Acquisition (Cost INR)

Consideration received (Proceeds)

Once you've entered all your transactions with the relevant information, the
Income Tax Portal will automatically calculate your profit and loss.

Important!
 If you have other gains, for example PnL from derivatives, you'll need to
report these in the Schedule VDA as well. You can use the figures from
Koinly's Other Gains Tax Report to do this.

After you've entered all your trades, your Schedule VDA will appear like so.

Once you've checked your figures and you're happy with the information
included in your Schedule VDA, select confirm to complete this section.

Report other income from crypto

On the schedules summary screen, select schedule income from other sources.

Now select gross income chargeable to tax at normal applicable rates and then
add details.

For the nature of income, select any other income and then add.

On the next page, enter the nature of income as crypto income and enter the
amount. You should use the total figure from the income summary section of
your Koinly Complete Tax Report.
Complete your other required schedules
Once you've completed the schedules above, complete any other required
scheduled and fill them in according to your income and deductions for the
financial year, as applicable to your circumstances.

Proceed to verification
Your final step is to select proceed for verification. At this point, you can preview
your completed ITR and submit once you're happy with it.

Once your ITR is submitted, you'll need to e-verify it. You can to this by
requesting a OTP to the mobile number linked to your Aadhaar card.

Once your return is e-verified, your return is successfully filed - you're done!
Once your ITR has been submitted, the ITD will let you know of any tax due on
capital gains or income, how to pay, and when it's due - all available in your
portal.

FAQs
More questions about reporting and paying tax on your crypto in India? We have
you covered!

How do I pay tax on crypto in India?

You pay tax on crypto by reporting your crypto as part of your ITR. Once you've
reported your crypto, the ITD will inform you of any tax due, and your payment
options, in your Income Tax Portal.
Wait, crypto is taxed in India?
Yes, your gains or income from crypto are very much taxable in India. You can
learn everything you need to know in our India Crypto Tax Guide, which includes
all the latest information from the Income Tax Department.

 Disclaimer
The information on this website is for general information only. It should not be taken as constituting
professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking
independent legal, financial, taxation or other advice to check how the website information relates to
your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or
otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use
of this website.

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The information on this website is for general information only. It should not be taken as
consulting professional advice from Koinly. Koinly is not a financial adviser. You should
consider seeking independent legal, financial, taxation or other advice to check how the
website information relates to you unique circumstances. Koinly is not liable for any loss
caused, whether due to negligence or otherwise arising from the use of, or reliance on, the
information provided directly or indirectly, by use of this website.