Crypto Taxes 2026: Report VDAs Right or Pay 30% + Penalty! Description
Virtual Digital Assets (VDAs) face a flat 30% tax + 1% TDS under Section 115BBH, with Schedule VDA in ITR mandatory, yet 90% of traders underreport due to FIFO confusion. Solutions

• Track trades via Koinly or CoinTracker for FIFO calc.

• Offset losses only against VDA gains.

• File ITR-3 with audit if turnover > ₹1 crore.

Live Example
A Warangal investor reported ₹8 lakh gains from Bitcoin trades accurately via Schedule VDA, claiming ₹50k loss set-off and saving on penalties. Methods

1. Calculate cost basis using FIFO method.

2. Deduct 1% TDS from exchanges.

3. Report in ITR under VDA heads.

4. Maintain transaction logs for 7 years.

Conclusion
Transparent crypto reporting ensures compliance—consult a CA for stress-free filings.