How to fill Schedule VDA in ITR-2 and ITR-3

Choose the return from your complete income profile

Schedule VDA appears in the applicable income-tax return, but the presence of crypto alone does not settle whether ITR-2 or ITR-3 is correct. Business or professional income, partnership status and other return-eligibility conditions can affect the choice. Review the current portal instructions or obtain tax advice before selecting the form.

Build the disposal ledger before opening the return

Export exchange trades, deposits, withdrawals and TDS statements. Add self-custody transactions and label transfers between accounts you beneficially own. Separate purchases from sales, crypto-to-crypto swaps, spending, gifts and other receipts. The tax portal cannot infer this context from a wallet address.

• Date of acquisition
• Date of transfer
• Whether the income is reported under business income or capital gains
• Cost of acquisition supported by records
• Full value of consideration in INR
• Income from the transfer for that transaction
• Exchange order ID, wallet addresses and transaction hash
• TDS evidence available in the applicable statement or certificate

Enter transfers transaction by transaction

The notified Schedule VDA asks for acquisition date, transfer date, the head of income, cost of acquisition, consideration and income for each transfer. Do not collapse several profitable and loss-making disposals into one net number unless the current form explicitly requires an aggregate at a later stage.

Use a consistent INR valuation source and timestamp for non-INR consideration. Preserve the calculation rather than entering a value that cannot later be reproduced.

The CryptooChai calculator can help you review transaction values and identify gaps before transferring supported figures into the official schedule.

Handle losses without ordinary portfolio netting

The VDA framework restricts setting off and carrying forward a loss from a VDA transfer. The notified schedule instructs taxpayers to enter nil for income where the transaction produces a loss. Keep the underlying loss row and evidence in your records even though it does not reduce a profitable VDA transfer in the usual way.

Reconcile TDS separately from VDA income

TDS can be calculated on consideration while final VDA tax is based on transfer income. Match platform records and the applicable tax statement to your ledger. A missing credit should be investigated; it should not be invented in the return merely because an exchange export labels an amount as TDS.

Check totals and linked schedules

Portal validation can connect Schedule VDA totals with capital-gain or business-income schedules and the special-rate calculation. Review the current validation message rather than forcing a number through. Confirm that dates, income head, totals and TDS credits agree with the supporting ledger.

Keep a filing evidence pack

• Final disposal ledger and valuation method
• Exchange statements, invoices and trade confirmations
• Wallet transaction hashes and own-wallet mapping
• TDS statements, certificates and reconciliation notes
• Copy of the filed return, acknowledgement and tax computation
• Notes explaining any missing records or professional advice obtained