The question
1 answer
Practising chartered accountants at ERPCA · 9 Sep 2026
In short
Each profitable trade is taxed at a flat 30% plus cess under section 115BBH, and the losses cannot be set off against the gains, even within crypto.
Computation: income from each transfer of a virtual digital asset is sale price less cost of acquisition only; no expenses, no exchange fees, no indexation. Losses on one coin cannot be set off against gains on another, cannot be set off against any other income, and cannot be carried forward. So you pay 30% on the full ₹3 lakh (₹90,000 plus cess) and the ₹1.8 lakh loss is simply lost. Coins received from airdrops or staking are taxed at slab rates as income on receipt, and then at 30% on the gain when sold.
TDS: section 194S requires the buyer to deduct 1% on payment for a VDA above ₹10,000 a year (₹50,000 for small individuals). On an Indian exchange the exchange deducts and reports it; it appears in your Form 26AS and is credited against the 30%. On Binance or any foreign or peer-to-peer platform the obligation falls on the buyer, which means you when you buy: deduct 1%, deposit it through challan-cum-statement Form 26QE within 30 days of the month end, and be ready to show it.
Reporting: Schedule VDA in ITR-2 (or ITR-3 if you treat it as business), listing every transfer with dates, cost and consideration. If you are an ordinarily resident, coins held on a foreign exchange go into Schedule FA as a foreign asset.
Next step
Download trade-by-trade reports from both platforms, compute each transfer separately, and pay any shortfall of advance tax before 15 March to limit interest.
General guidance on the facts given, not an engagement. Law as on the date of the answer.
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