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2026 ITR Season Exposes Crypto Investors' Tax Reporting Gaps

2026 ITR Season Exposes Crypto Investors' Tax Reporting Gaps
2026 ITR season reveals major reporting gaps among crypto investors: Who can still file tax returns by 31 August? · livemint.com

In India, people who buy or sell cryptocurrency have to tell the government about it when they file their taxes.

The government takes a small part of the money from these trades in advance, called TDS.

Many people thought that once this money was taken, they were done with their taxes.

But that's not true — they still need to file an income tax return.

A tax expert named Punit Agarwal says only about 21 out of every 100 people who had this money taken actually went on to file their returns.

When people don't file, they might owe more tax, or they might miss getting a refund of the money that was taken from them.

Fortunately, people who missed the first deadline can still file a belated return, though they might have to pay a late fee.

There are different forms for different situations — one for regular investors and another for people who trade a lot.

All crypto income, like rewards for holding coins or free coins from airdrops, must be reported in a special section called Schedule VDA.

If they file properly, investors can still get their TDS refunds back.

Key facts

Crypto investors filing rate
Only 21.83% of KoinX users with TDS deducted filed crypto taxes
TDS legal basis
Section 194S
Belated return provision
Section 139(4)
Reporting schedule
Schedule VDA
ITR-2 deadline
31 July (regular); 31 December 2026 (belated)
ITR-3 deadline
31 August for non-audit cases; 31 October for tax audit cases
KoinX CEO
Punit Agarwal

Quotes

Punit Agarwal

Founder & CEO of KoinX

“According to Punit Agarwal, Founder & CEO at KoinX, TDS is only an advance collection of tax under Section 194S and does not replace the requirement to file an income tax return or report crypto income.”
livemint.com
“He says taxpayers can still claim eligible TDS refunds even while filing a belated return, provided the return is filed correctly and Schedule VDA is duly completed.”
livemint.com

Sources

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