Which ITR Should I File for Crypto or VDA Income?
Virtual Digital Asset (VDA) income is not a normal ITR-1 item when it creates income taxable under the special VDA provisions. For AY 2026-27, taxpayers without business/professional income generally need ITR-2; business/professional facts can lead to ITR-3.
Quick Answer
In practical terms, Virtual Digital Asset (VDA) income is not a normal ITR-1 item when it creates income taxable under the special VDA provisions. For AY 2026-27, taxpayers without business/professional income generally need ITR-2; business/professional facts can lead to ITR-3.
Who can use the simpler ITR forms?
The AY 2026-27 ITR-2 form contains a Schedule VDA and includes VDA income within the capital-gains computation framework. ITR-1 excludes income taxable at specified special rates.
What to check before choosing the ITR
If your crypto activity is part of business/profession, the business-income return rules need to be considered, generally ITR-3 unless you qualify for ITR-4. ITR-4 is restricted where income is chargeable at special rates.
When another ITR may be required
Keep exchange statements, transaction ledgers, purchase/sale records and tax deducted details, if any, so VDA transactions can be reconciled before filing.
Practical filing tip
Income from crypto or other VDAs has specific tax and reporting considerations. Keep exchange-wise transaction records and determine the applicable ITR after considering your complete income profile.
