If you sold crypto between 1 April 2025 and 31 March 2026 and the gain never made it into your income tax return, the cheapest fix is still open, but not for long. Until 31 December 2026 you can revise the return for assessment year (AY) 2026-27 with no extra fee. After that, every step down the ladder costs more, and the last step, years from now, adds 70% to the bill.
The deadlines come from the Finance Act, 2026 changes announced in the Budget, which extended the revised-return window from 31 December to 31 March for a fee, and from the Income Tax Department’s page on updated returns, which sets the ITR-U surcharges.
The four ways to fix a missed crypto gain
| Route | Last date (AY 2026-27) | Extra cost |
|---|---|---|
| Revised return (you filed on time but left crypto out) | 31 Dec 2026 | No fee; interest on unpaid tax |
| Revised return, late window | 1 Jan to 31 Mar 2027 | Fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000 |
| Belated return (you never filed) | 31 Dec 2026 | Late fee of ₹1,000 or ₹5,000, plus interest |
| Updated return (ITR-U) | Up to 31 Mar 2031 | 25% to 70% of tax plus interest, on top |
The ITR-U surcharge rises with time. Filed within 12 months of the end of the assessment year (by 31 March 2028), it is 25% of the tax and interest due. Within 24 months it is 50%, within 36 months 60%, and within 48 months 70%, according to the department’s guidance note on updated returns.
BtcMedia’s worked example: a missed ₹2 lakh gain
Take a salaried investor who sold bitcoin for ₹5 lakh in January 2026, made a ₹2 lakh gain, filed ITR-2 in July and left the sale out. Total income is above ₹5 lakh, so the higher fee applies.
- Tax on the gain: 30% plus 4% cess on ₹2,00,000 = ₹62,400.
- The exchange already deducted 1% TDS on the ₹5 lakh sale, ₹5,000, which is claimed as credit. Unpaid tax: ₹57,400.
- Interest: we assume roughly 1% a month on the unpaid ₹57,400 from 1 April 2026 (section 234B style), and ignore 234C to keep it simple.
| When you fix it | Interest (approx.) | Fee or ITR-U surcharge | Total you pay |
|---|---|---|---|
| Revised return, Dec 2026 | ₹5,166 | None | ₹62,566 |
| Revised return, Mar 2027 | ₹6,888 | ₹5,000 fee | ₹69,288 |
| ITR-U, Mar 2028 (25%) | ₹13,776 | ₹17,794 | ₹88,970 |
| ITR-U, Mar 2029 (50%) | ₹20,664 | ₹39,032 | ₹1,17,096 |
| ITR-U, Mar 2030 (60%) | ₹27,552 | ₹50,971 | ₹1,35,923 |
| ITR-U, Mar 2031 (70%) | ₹34,440 | ₹64,288 | ₹1,56,128 |
The same mistake costs about two and a half times as much in 2031 as it does this December. Your actual interest will depend on your advance-tax position and the exact payment date, so treat the table as an illustration of the trend, not your bill.
Why waiting rarely works with crypto
Every sale on an Indian exchange carries 1% TDS, and that TDS lands in your Annual Information Statement (AIS). The department can match it against the Schedule VDA in your return. If it raises the gap first, the cheap routes may close: an updated return is not allowed in some cases, such as after a search or once an assessment for that year is pending or completed. Under-reported income can then attract a penalty of 50% of the tax under section 270A, and 200% if it is treated as misreporting.
How to fix it this week
- Download the FY 2025-26 statements from every exchange and wallet, and match the TDS against your AIS and Form 26AS. Our TDS reconciliation tool helps here.
- Work out each gain with the crypto tax calculator for India. Each sale is a separate row; a loss on one coin can’t reduce the gain on another.
- Pay the balance tax and interest as self-assessment tax, then file the revised ITR-2 or ITR-3 with Schedule VDA filled in. Our AY 2026-27 filing checklist lists every column.
BtcMedia verdict
If a crypto sale is missing from your return, revise before 31 December 2026. It is the only route with no fee and no surcharge, and the price of every later route rises every year.
FAQ
Can I revise my return if I never filed one?
No. A revised return needs an original return. If you never filed for AY 2026-27, a belated return is open until 31 December 2026, with a late fee.
Does ITR-U let me add a crypto loss?
An updated return can’t be used to lower your tax or raise a refund. It is for declaring income you left out.
Does the new Income-tax Act, 2025 change this?
It applies to income from 1 April 2026. Gains from FY 2025-26 are still filed and corrected under the 1961 Act rules described here.
How we calculated this: tax at 30% plus 4% cess on a ₹2,00,000 gain, less ₹5,000 TDS; interest approximated at 1% a month on ₹57,400 from 1 April 2026 to each filing month; ITR-U surcharge applied to tax plus interest as per section 140B. Figures checked 30 October 2026, 9:00 AM IST.
This is general information, not tax or financial advice. Speak to a chartered accountant about your own return.