If you bought, sold, swapped, staked, or even received crypto as a gift this year, you need to file crypto tax in India, and the Income Tax Department already knows about it and so should you. Every crypto trade on a crypto exchange like Suncrypto you’ve made is quietly being logged in your Annual Information Statement (AIS), which means skipping crypto in your tax return isn’t really an option anymore.
The good news? Filing crypto tax in India isn’t complicated once you understand the rules. This guide breaks down exactly how crypto is taxed, which ITR form applies to you, and how SunCrypto users can generate a ready-to-file tax report in a few taps.
Why can’t crypto tax filing be ignored anymore?
Since the introduction of Section 115BBH and Section 194S, crypto transactions in India fall under a clear (if strict) tax framework. Exchanges like SunCrypto are required to deduct tax at source and report transaction data to the government, which means your trading activity is already visible to the tax department through your AIS. Filing your ITR without reporting these gains can lead to mismatches, notices, and penalties, all of which are easily avoidable with the right report in hand.
3 rules every crypto investor in India should know
1. A flat 30% tax on crypto gains
Under Section 115BBH, profits from Virtual Digital Assets (VDAs), including cryptocurrencies and NFTs, are taxed at a flat 30%, regardless of how long you held the asset or which income slab you fall into. There’s no benefit to long-term holding here, and losses from one crypto asset cannot be set off against gains from another.
2. 1% TDS under Section 194S
SunCrypto deducts 1% TDS on applicable crypto transactions at the time of the trade. This isn’t an additional tax; it’s an advance deduction that gets adjusted against your final tax liability and shows up in your AIS, so it’s important to reconcile it correctly when filing.
3. Mandatory reporting under Schedule VDA
To file crypto tax in India, all crypto gains must be disclosed under Schedule VDA in your income tax return. This is a dedicated section introduced specifically for reporting virtual digital asset transactions, separate from your regular capital gains schedule.
How are different crypto transactions taxed?
Not all crypto activity is treated the same way. Here’s a detailed breakdown of how common transaction types are taxed in India:
|
Transaction Type |
Tax Applicable | 1% TDS (Sec 194S) |
ITR Form |
|
Buying crypto (fiat → crypto) |
None on purchase | No | ITR-2 / ITR-3 |
| Selling crypto (crypto → fiat) | 30% on capital gain | Yes |
ITR-2 / ITR-3 |
|
Crypto-to-crypto swap |
30% on capital gain | Yes | ITR-2 / ITR-3 |
| Spending crypto (goods/services) | 30% on capital gain | Yes |
ITR-2 / ITR-3 |
|
Mining rewards (on receipt) |
Slab rate on receipt + 30% on later sale | No |
ITR-3 (business income) |
|
Staking rewards (on receipt) |
Slab rate on receipt + 30% on later sale | No |
ITR-2 (other income) / ITR-3 |
|
Airdrops (on receipt) |
Slab rate on receipt + 30% on later sale | No |
ITR-2 (other income) / ITR-4 |
|
Salary paid in crypto |
Slab rate on receipt + 30% on later sale | No |
ITR-1 / ITR-2 / ITR-3 |
|
Crypto referral/bonus income |
Slab rate on receipt + 30% on later sale | No | ITR-2 (other income) / ITR-4 |
| Gifting crypto (sender, treated as disposal) | 30% on capital gain | No |
ITR-2 / ITR-3 |
|
Receiving crypto as a gift |
Slab rate if value > ₹50,000 (exempt for close relatives) + 30% on later sale | No | ITR-1 to ITR-6 |
| Donating crypto | 30% on gain (no Section 80G deduction) | No |
ITR-2 / ITR-3 |
|
Futures/derivatives trading |
Slab rate (speculative business income) | No | ITR-3 |
| ICO/IDO participation (on sale) | 30% on capital gain | Yes |
ITR-2 / ITR-3 |
Note: This table is for general guidance. Individual tax treatment can vary, so it’s best to consult a tax advisor for your specific situation.
Which ITR form should you file?
The correct ITR form depends entirely on how you traded:
- Spot or delivery trading: If you simply bought and sold on SunCrypto, you’ll likely file ITR-2.
- Derivatives or F&O trading: If you traded crypto futures or derivatives, you’ll likely need ITR-3, since this is treated as business income.
Getting this wrong is one of the most common crypto tax in India filing mistakes, and it’s exactly the kind of detail a proper tax report resolves before you even start filling out your return.
How does SunCrypto make crypto tax filing effortless?
Manually calculating gains across dozens or hundreds of trades while applying the right tax treatment to each transaction type is where most investors get stuck. That’s why SunCrypto has partnered with KoinX to bring tax reporting directly into the app.
With the SunCrypto x KoinX integration, your entire trade history syncs automatically; no CSV uploads, no API keys, and no manual data entry.
How to generate your SunCrypto tax report?
- Open the SunCrypto mobile app
- Go to Profile Section
- Select Tax Report with KoinX
- Tap Agree & Proceed
- Your SunCrypto trade history syncs automatically with KoinX
- KoinX calculates your crypto tax liability and generates an ITR-ready report
- Use code SUNCRYPTO50 for 50% off any KoinX plan, up to ₹300
What’s included in your report?
- Complete Tax Report
- Schedule VDA Report
- Schedule VDA Derivatives Report
- Tax Filing Data Report
- Income Summary Report
- Buy-Sell Report
- Transaction History Report
- Beginning and End-of-Year Balance Reports
KoinX applies FIFO accounting by default and automatically categorizes spot and derivative trades, though you can adjust the accounting method under Tax Settings if needed.
A Quick Word on Safety
KoinX only receives read-only access to your SunCrypto transaction history. It cannot place trades, withdraw funds, or modify your account in any way; your data syncs for reporting purposes only.
Special offer for SunCrypto users
As part of the SunCrypto x KoinX partnership, SunCrypto users get an exclusive discount on their tax report:
Pricing is based on the number of transactions in your selected financial year, once your history syncs, KoinX automatically shows you the applicable plan. Each plan is valid for one financial year (for example, FY 2025–26 covers transactions from 1 April 2025 to 31 March 2026). If you need reports for another financial year, you’ll need to select and purchase separately for that year.
Read More: Basics of Crypto Tax in India
What is the SunCrypto x KoinX integration?
A built-in tool that lets SunCrypto users generate ITR-ready crypto tax reports by syncing their trade history directly with KoinX.
Do I need to upload CSV files or API keys?
No. Your SunCrypto trade history syncs automatically in one click.
Is my SunCrypto account safe during this process?
Yes. KoinX only gets read-only access and cannot make any changes to your account.
Which ITR form applies to me?
Spot/delivery traders generally file ITR-2; derivatives/F&O traders generally file ITR-3. Consult a tax advisor for your specific case.
Can I generate reports for multiple financial years?
Yes, but each year requires its own plan and selection.