#tax To report undisclosed crypto income in your Income Tax Return (ITR), follow these steps:

Reporting Crypto Income

Crypto Gains: Report under Schedule VDA in the ITR. Gains from cryptocurrency are taxed at a flat 30% rate, regardless of whether it's considered capital gains or business income.

Tax Deducted at Source (TDS): Crypto transactions are subject to 1% TDS on sale consideration if transactions exceed ₹50,000 in a financial year.

Tax Implications

Capital Gains: Taxed at 30% if held as an investment.

Business Income: Taxed at 30% if traded frequently.

Income from Other Sources: Applies to gifts or airdrops, taxed at regular slab rates.

Filing Requirements

Crypto Bookkeeping: Use crypto bookkeeping software to manage and consolidate transactions from different exchanges and wallets.

Form 26QE or 26Q: File for TDS deductions, depending on your status as an individual or non-individual.

Disclosure: Ensure accurate disclosure of crypto income and gains in your ITR to avoid notices from tax authorities ¹.