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Crypto Filing

  • Accurate tax reporting of crypto transactions
  • Prevents notices due to AIS / exchange data mismatch
  • Ensures correct application of flat 30% tax
  • Proper handling of 1% TDS on crypto trades
  • Mandatory compliance with VDA provisions
  • Avoids defective returns and penalties
  • Clear audit trail for future scrutiny

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7 Years

Of Experience

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3622 +

Cases Solved

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10 +

Awards Gained

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144 k +

Trusted Clients

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36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

Crypto Tax Filing involves the correct computation and reporting of income from Virtual Digital Assets (VDAs) such as cryptocurrencies, NFTs, and other blockchain-based assets.
Under Indian tax law, crypto income is taxed under a special framework, separate from normal capital gains or business income. The rules are strict, transaction-based, and system-monitored, leaving little room for error or adjustment.

Incorrect crypto reporting frequently leads to:

  • Notices due to AIS / exchange data mismatch
  • Disallowance of losses
  • Additional tax, interest, and penalties
Crypto income must be reported accurately to the Income Tax Department, regardless of whether profit or loss was made overall.

Who Should Opt for Crypto Tax Filing Services?

  • Individuals who traded cryptocurrencies
  • Investors who sold crypto or NFTs
  • Users of Indian or foreign crypto exchanges
  • Taxpayers with multiple crypto transactions
  • First-time crypto investors unsure of tax rules
  • Individuals who received crypto as gift or reward
  • Taxpayers with 1% TDS deducted on trades
If crypto appears in your AIS or exchange statement, reporting is mandatory.

How Crypto Is Taxed in India (Current Framework)

1️⃣Tax Rate on Crypto Income
  • Flat 30% tax on gains from each transaction
  • Plus applicable surcharge and cess
  • No basic exemption benefit
2️⃣Loss Treatment
  • Loss from crypto cannot be set off
  • Cannot be carried forward
  • Each transaction is taxed independently
3️⃣Expense Deduction
  • Only cost of acquisition is allowed
  • No deduction for fees, internet, electricity, etc.
4️⃣TDS on Crypto Transactions
  • 1% TDS on transfer of VDAs
  • Reflected in Form 26AS / AIS
  • Must be reconciled during filing
Crypto tax rules are non-negotiable and mechanical.

ITR Selection for Crypto Filing (Critical)

Crypto income cannot be filed in ITR-1 or ITR-4.
Depending on other income:
  • ITR-2 → Salary / other income + crypto
  • ITR-3 → Business / professional income + crypto
Wrong ITR selection can result in a defective return notice.

Documents Required for Crypto Tax Filing

To file crypto income correctly, the following are required documents :
Documents
  • 1 PAN and Aadhaar
  • 2 Crypto exchange statements (Indian & foreign)
  • 3 Trade-wise buy and sell data
  • 4 Wallet transaction history (if applicable)
  • 5 Details of crypto gifts or airdrops
  • 6 TDS details (1% VDA TDS)
  • 7 Form 26AS and AIS
  • 8 Previous year ITR (if any)

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Penalties and Consequences of Incorrect Crypto Filing

Non-compliance may result in:

Additional 30% tax demand
Interest and penalties
Loss of TDS credit
Defective return notices
Reassessment proceedings
Long-term scrutiny flagging

How We Work

Step 01

Transaction & Exchange Data Review

Step 02

Trade-wise Gain Computation

Step 03

TDS Reconciliation (1% VDA TDS)

Step 04

Correct ITR Selection & Filing

Step 05

Post-Filing Notice Support

Common Errors and Mistakes

01

Treating crypto gains as normal capital gains

02

Offsetting crypto losses against other income

03

Ignoring 1% TDS credits

04

Filing in wrong ITR form

05

Reporting only net profit instead of trade-wise gains

06

Ignoring foreign exchange transactions

Due Dates & Reporting Timeline

Crypto income must be reported in the relevant assessment year
Delay leads to Interest and penalties
TDS mismatch issues surface after processing, not immediately

FAQs

Is crypto taxed even if I don’t withdraw money?

Yes. Tax applies on transfer/sale, not withdrawal.

Can crypto losses reduce other income?
Is 1% TDS the final tax?
Is crypto income taxable if amount is small?
Can crypto be reported in ITR-1?

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What Our Clients Say

Discover what our satisfied clients have to say about their experience working with us

Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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