CBDT Releases Detailed Crypto Tax Reporting Guidelines

A new circular provides clarity on reporting gains from cryptocurrencies and VDAs, which are taxed at 30% under Section 115BBH.

Taxpayers must now report each trade individually, including the date of acquisition and sale, in the newly introduced Schedule VDA of ITR‑2/ITR‑3.

Loss from one VDA cannot be set off against another, and no deduction for expenses (other than cost of acquisition) is allowed.

This update also confirms that the 1% TDS under Section 194S on VDA transfers will continue, and it must be reconciled with 26AS.