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How to Report Crypto Income in ITR Form
The income from the sale of Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs is subject to a flat tax rate of 30%.
Deductions for expenses other than the cost of acquisition are not allowed when calculating taxable income from VDAs.
Depending on the purpose and nature of VDA ownership, the income can be taxed either as business income or capital gains.
The appropriate ITR form to report income from VDAs is ITR-2 for capital gains and ITR-3 for business income.
The due date for filing the ITR depends on whether the income is reported as capital gains or business income, with different deadlines applicable.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
