Which ITR form for crypto?

If you sold, swapped or spent crypto in India during the financial year, you need to file an income tax return that includes Schedule VDA. ITR-1 (Sahaj) and ITR-4 (Sugam) do not include it, so they cannot be used.

Most salaried investors who buy and sell crypto as an investment use ITR-2 and report VDA gains under capital gains. If you have income from business or profession, for example from a business, freelancing, or intraday and F&O trading, you need ITR-3, and crypto can be reported either as capital gains or as business income depending on how you treat it. Either way, the 30% rate and the ban on setting off losses are the same.

Before filing, download your exchanges' tax reports, gather wallet records for transfers outside exchanges, and reconcile the 1% TDS shown in Form 26AS and AIS. Crypto received as a gift, airdrop or reward may need to be reported under other heads as well.