Schedule VDA (ITR)

Schedule VDA is the section of the Indian income tax return where you report income from transferring virtual digital assets such as crypto and NFTs. It was introduced in the ITR forms for assessment year 2023-24, the first year of the 30% VDA tax.

Each transfer must be reported separately, with the date of acquisition, date of transfer, cost of acquisition, sale consideration and resulting gain, and you choose whether it is taxed as capital gains or business income. Losses are entered as nil and cannot reduce other gains. The schedule is available in ITR-2 (for individuals without business income) and ITR-3 (for those with business or professional income); ITR-1 and ITR-4 cannot be used if you have VDA income.

Exchanges usually provide tax reports with this data. Check that the TDS shown in your Form 26AS and AIS matches your records, and remember that crypto-to-crypto swaps are transfers that must be reported too.