Crypto, short for cryptocurrency, is a digital or virtual currency that uses cryptography for security. Unlike traditional currencies (like INR or USD), cryptocurrencies are decentralized and typically operate on a technology called blockchain. In India, crypto is not legal tender, but buying, selling, and holding it is not illegal. It is regulated for taxation, and profits are taxed under specific provisions.
Exists only in digital form, no physical coins.
Not controlled by any government or bank.
Transactions are recorded on a public ledger.
Uses cryptographic techniques to ensure secure and anonymous transactions.
Can be sent/received anywhere in the world, almost instantly.
Sr.No | Crypto Traders (NRE/NRO Income earned in India) |
---|---|
1 | PAN Card |
2 | Aadhaar Card |
3 | Bank Account Details |
4 | Email ID & Mobile Number |
5 | Transaction History from all crypto exchanges used |
5 | Wallet addresses, if crypto held in self-custody |
6 | Transfer logs – between wallets or exchanges |
7 | Buy/sell dates, quantity, price, and type of cryptocurrency |
8 | Capital Gains Report (Short-term/Long-term, if any) |
9 | Crypto-to-crypto trades (considered taxable events) |
10 | Airdrops, staking rewards, mining income (if any) – treated as income from other sources |
11 | Salary income (Form 16) |
12 | Interest income (bank FDs, savings) |
13 | Rental income, capital gains from other assets |
Situation | ITR Form |
---|---|
Salaried with crypto income | ITR-2 |
Business income from trading crypto full-time | ITR-3 |
Presumptive business income (not preferred for crypto) | ITR-4 |
Taxpayer Category | Due Date for ITR Filing |
---|---|
Individuals, HUFs, AOPs, BOIs (non audit) including crypto income | 31st July |
Taxpayers with audited accounts (e.g. business owners) | 31st October |
Taxpayers with international or specified domestic transactions 30th November | 30th November |
Belated or revised returns | 31st December |
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