Filing crypto in ITR for delta exchange

Income Tax ITR Filing
1

Hi all!
I had done trading in crypto last year. The platform I had used was Delta Exchange where USDT tokens were purchased using (Alpyne labs, Mudrex, Onmeta, etc).

While the year ended in loss itself but in form 26 I see that under VDA i have one withdrawal transaction mentioned where TDS was deducted (which was done using WazirX). No other transactions of purchase or trade are mentioned anywhere in the form. From Delta Exchange history too I get the amount in USDT numbers where how to convert it back to INR for filing is confusing. So any help on this?

I have a question around ITR for this. My understanding is that I should mention my overall buying amount (lets say 1 lakh) and then selling/withdrawal amount (lets say 10k). While only withdrawal is mentioned in form 26, is this filing correct? If yes then will the amount be adjusted with overall loss or I will have to pay extra tax on withdrawal amount (which might be considered as profit maybe here) which is 10k?

2

Hi @Ishan

You need to pay tax @30% if you have earned profit on trading of crypto currency. However, in case of loss it cannot be adjusted against any other income in order to reduce the overall tax payable. Hope this clarifies.

Thanks

3

Hi Pulkit!
Thank you for the reply. The question was not around how much tax or loss adjustment actually. It was basically around filing in ITR and how crypto platforms report the transactions or any data which is counted in form 26.

4

Hi @Ishan

You need to show the entire sales consideration and cost of acquisition in the ITR. Form 26AS/AIS would only display the Gross Sales consideration as TDS is deducted on sales consideration. Hope this clarifies.

You can also connect with me on Instagram @FinTaxSnippets for any further clarifications in this regard.

Thanks,
CA. Pulkit Garg