Do I need to report crypto even if I made a loss?
Yes. Schedule VDA must report every transfer, including losses, even though a loss gives no tax benefit. Not reporting can lead to a notice, and AIS and TDS data from exchanges are available to the department. We report every transfer with supporting details.
Why cannot I set off my crypto loss?
Section 115BBH specifically disallows set-off of loss from transfer of a VDA against income from any other source, including gains on other VDAs, and does not allow carry-forward. The law taxes gain on each asset separately at 30% while giving no relief for a loss.
What is the 1% TDS on crypto and can I get it back?
A 1% TDS is deducted on transfer of a VDA above the threshold (₹50,000 a year for specified persons, ₹10,000 otherwise). It is not an additional tax; it is credited against your final liability in Form 26AS, and any excess is refunded when you file the return.
How are gifts and airdrops taxed?
Crypto gifted to you is taxable in your hands above ₹50,000 a year unless it comes from a relative, and an airdrop is generally treated as income at the fair value on receipt. When you later sell, the cost is the value on which tax was paid. We record each receipt with its value.
Is staking income business income?
Staking rewards are commonly treated as income from other sources at the fair value on receipt, or as business income if there is a regular activity. The classification affects the form. We examine the nature and volume of your activity before deciding.
What if the exchange is outside India?
Gains on offshore exchanges are taxed in India for a resident, with no TDS deducted. The balance may need to be shown as a foreign asset in Schedule FA, and a penalty under the Black Money Act can apply for non-disclosure. We check your residence and report accordingly.
What is the last date to file an income tax return?
For individuals and HUFs who do not need an audit, the usual due date is 31 July after the financial year ends. Cases needing a tax audit normally get 31 October, and companies with transfer pricing reports 30 November. The government sometimes extends dates, so we confirm the notified date for your year before we start.
What happens if I miss the ITR due date?
You can still file a belated return under section 139(4), generally until 31 December of the assessment year, but with a late fee under section 234F (₹5,000, or ₹1,000 if total income is up to ₹5 lakh) and interest under 234A. Most losses cannot be carried forward in a belated return, which can cost more than the fee itself.
Do I need to e-verify my return after filing?
Yes. A return is treated as filed only after e-verification, which must be completed within 30 days of filing. You can verify with Aadhaar OTP, net banking, a pre-validated bank account or a demat account. We guide you through it and confirm the processed status on the portal afterwards.
