How to Report Crypto and VDA Transactions in myITreturn – myITreturn Help Center

Introduction

If you sold, exchanged or otherwise transferred cryptocurrency or other Virtual Digital Assets during the financial year, the relevant transactions must be reported in your Income-tax Return.

myITreturn allows you to:

Enter VDA transactions manually through the website or mobile app.
Reconcile VDA income and TDS before filing.

Schedule VDA requires transaction-wise details for every reportable VDA transfer, including the acquisition date, transfer date, cost of acquisition and consideration received.

This article explains the myITreturn reporting procedure.

Information Required Before You Start

Keep the following records ready:

Transaction statement from every crypto exchange used during the year.
Wallet transaction history, where relevant.
Name of the cryptocurrency, NFT or other VDA.
Date of purchase or acquisition.
Date of sale, exchange or transfer.
Purchase value or cost of acquisition in Indian rupees.
Sale or transfer value in Indian rupees.
TDS deducted on the transaction.
Name and TAN of the deductor, where applicable.
AIS and Form 26AS for TDS reconciliation.

Include transactions from all exchanges and wallets. Do not rely only on the net profit or loss shown by one exchange.

Step 1: Log In and Select the Tax Filer

Step 2: Open the Crypto/VDA Income Section

On the myITreturn Website

Select the relevant member.
Click Continue Self-Filing.
Open the Income menu.
Select Capital Gain – Crypto/VDA.
Click Add Transaction.

On the myITreturn App

Select the relevant member.
Choose Easy E-filing.
Enable Crypto Income in the tax profile and tap Continue.
The Income and Taxes tab opens.
Tap Add against Crypto Income.
Tap Add again to enter the transaction details.

The website and app collect substantially similar VDA information, although the menu names and screen layouts differ.

Step 3: Enter the VDA Transaction Details

Enter the following information:

Name of VDA

Enter the name of the cryptocurrency, token, NFT or other digital asset, such as Bitcoin, Ethereum or Litecoin.

Date of Purchase or Acquisition

Enter the date on which the VDA was purchased or otherwise acquired.

Date of Sale or Transfer

Enter the date on which the VDA was sold, exchanged or otherwise transferred.

Sale Value of VDA

Enter the sale or transfer consideration in Indian rupees.

Where the transaction was conducted in a foreign currency or through another cryptocurrency, use the correctly determined INR value for reporting.

Purchase Value of VDA

Enter the allowable cost of acquisition in Indian rupees.

Do not include exchange fees, brokerage or other expenditure in the acquisition value unless it legally forms part of the permitted cost. Under section 115BBH, expenditure other than the cost of acquisition is not deductible.

Profit or Loss

myITreturn may calculate the difference between the sale value and purchase value. Check the calculation against your exchange report and supporting records.

Tax on VDA Gain

The system may display the tax calculated on the VDA gain. Review the figure as part of the detailed computation rather than treating it as a separately entered tax payment.

TDS Deducted

Enter the amount of TDS deducted on the transaction, where applicable.

TAN and Name of Deductor

Enter the deductor’s TAN and name as appearing in Form 26AS, AIS, the exchange report or the TDS certificate.

After completing the details, click Submit on the website or Save in the app.

Step 4: Add the Remaining Transactions

After saving the first entry, myITreturn displays a summary containing the VDA name, profit and tax information.

Select Add to enter another transaction. Repeat the process until all reportable VDA transactions for the financial year have been included.

Step 5: Validate the VDA Summary

Before proceeding, review all manually entered records carefully.

Check the Reporting Period

For AY 2026-27, include relevant transactions occurring between:

1 April 2025 and 31 March 2026

Do not include transactions belonging to FY 2024-25 or FY 2026-27.

Check Every Exchange and Wallet

Reconcile the entries with:

Indian crypto exchanges.
Foreign exchanges.
Decentralised platforms.
Private wallets.
NFT marketplaces.
Peer-to-peer transaction records.

Do Not Set Off VDA Losses Against VDA Profits

A loss from one VDA transaction cannot be adjusted against profit from another VDA transaction. It also cannot be set off against income from another source or carried forward.

The official Schedule VDA instructions require a loss transaction to be reported as nil for income computation, while positive income from other transactions is aggregated.

Reconcile TDS

Compare the TDS entered in myITreturn with:

AIS.
Form 26AS.
Exchange tax statement.
TDS certificate, where issued.

For FY 2025-26, TDS relating to VDA transactions should be claimed in the AY 2026-27 return under the Income-tax Act, 1961.

Step 6: Edit or Delete Incorrect Entries

Use the edit option beside a saved transaction to correct:

VDA name.
Purchase or transfer dates.
Purchase value.
Sale value.
TDS amount.
Deductor details.

Delete an entry where it has been duplicated or does not belong to the selected financial year.

Review the summary again after making corrections.

Step 7: Review the Detailed Tax Computation

Open the Summary or Detailed Computation section and check:

Total VDA income reported.
Tax calculated on VDA income.
TDS credit claimed.
Other income included in the return.
Surcharge and health and education cess, where applicable.
Final tax payable or refund.

Schedule VDA information flows into the relevant capital-gains schedules of the return. The applicable ITR form depends on your complete income profile and not only on the existence of crypto income.

Step 8: Complete and Submit the Return

Once the VDA details and tax computation are correct:

Complete the remaining income, deduction, bank and personal-information sections.
Review the complete return summary.
Pay any self-assessment tax that remains payable.
Proceed to e-File.
Submit the return.
Complete e-verification through an available verification method.

Retain the exchange reports, wallet records, transaction statements and tax calculations in case any clarification is required later.

Common Mistakes to Avoid

Reporting Only the Amount Withdrawn to a Bank Account

Tax reporting is not limited to the amount converted into INR or withdrawn to a bank account. Other types of VDA transfers may also require reporting.

Entering Only the Exchange’s Net Profit

Schedule VDA operates on transaction-wise information. Do not use an annual net figure that improperly adjusts loss-making transactions against profitable transactions.

Claiming Exchange Fees as a Separate Deduction

Section 115BBH generally permits only the cost of acquisition while computing income from the transfer of a VDA. Other expenditure is not separately deductible.

Ignoring TDS Because the Transaction Made a Loss

TDS may appear in AIS or Form 26AS even where the transaction resulted in a loss. Enter and reconcile the eligible TDS credit separately.

Mixing Financial Years

Use the actual transfer date to determine the financial year in which a transaction must be reported.

Entering the Same Transaction More Than Once

Review the saved summary after each entry and delete any duplicate transaction before proceeding.

Applicable Legal Provisions

For FY 2025-26 and AY 2026-27, the principal provisions are:

Section 2(47A): Definition of Virtual Digital Asset.
Section 115BBH: Tax on income from the transfer of VDA.
Section 194S: TDS on consideration for transfer of VDA.

For tax years beginning on or after 1 April 2026, the Income-tax Act, 2025 applies. The corresponding provisions include the VDA definition in section 2(111), the special tax treatment in section 194, Table Sl. No. 4, and VDA TDS under section 393(1), Table Sl. No. 8(vi). The core 30% rate and restrictions on deductions and loss set-off continue under the new framework.

Conclusion

myITreturn allows users to report crypto and VDA transactions manually through the website or mobile app. Before completing the return, verify all entered records against exchange statements, wallet histories, AIS and Form 26AS.

Check carefully for missing or duplicate transactions, incorrect INR values, and any improper adjustment of losses from one VDA transaction against profits from another, as such set-off is not permitted.

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