India taxes transfers of virtual digital assets (VDAs) — including crypto — under a special regime: special-rate gains under Section 115BBH of the Income-tax Act, 1961 (Section 194 (Table S. No. 4) of the Income-tax Act, 2025), Schedule VDA disclosure, restricted loss set-off, and TDS under Section 194S of the Income-tax Act, 1961 (Section 393(1) [Table Sl. No. 8(vi)] of the Income-tax Act, 2025). PJRJ helps investors, traders, startups, and corporates compute gains, keep wallet/exchange books, handle VDA TDS where they are the payer, and file a defensible ITR. We do not provide crypto investment advice or exchange recommendations.
Who this engagement is for
- Individuals with crypto or NFT transfers who need Schedule VDA in their ITR
- Active traders needing wallet/exchange reconciliation and gain working papers
- Businesses or platforms that may have §194S / §393(1) TDS obligations on VDA transfers
- Startups and Web3 teams with Indian tax filing and bookkeeping needs
- Taxpayers facing AIS mismatches or notices on high-value digital-asset activity
What we deliver
Schedule VDA & special-rate computation
Identify taxable transfers, compute gains under Section 115BBH of the Income-tax Act, 1961 (Section 194 (Table S. No. 4) of the Income-tax Act, 2025), and prepare Schedule VDA with supportable cost and consideration workings.
Wallet & exchange books
Reconcile exchanges, wallets, and INR bank trails into a year-end pack — so AIS/26AS and the return can be explained.
§194S / §393(1) TDS support
When you pay for a VDA transfer, we advise on withholding under Section 194S of the Income-tax Act, 1961 (Section 393(1) [Table Sl. No. 8(vi)] of the Income-tax Act, 2025), challan, and return reporting — coordinated with the TDS desk where needed.
ITR filing with VDA disclosure
File the correct ITR form with Schedule VDA, related TDS credits, and notes for partner review — then e-verify.
Notice & AIS mismatch replies
Respond to AIS mismatches and departmental queries on crypto/VDA with the same working papers used for filing.
Corporate / startup crypto accounting
Treasury or payroll-related VDA positions mapped into books and tax positions — tax and accounting only, not investment strategy.
Related crypto desks
Form 167 / CASP reporting
Platforms, OTC desks, and crypto-asset service providers preparing §509 / Form 167 statements under the Rules 2026 reporting framework.
Overseas crypto & Schedule FA
Foreign exchanges and wallets — Schedule FA, advance tax, and filings where Indian VDA TDS was never deducted.
Prior-year remediation
Belated or updated returns and AIS replies for years when Schedule VDA was never filed.
Scope boundary: PJRJ provides tax, accounting, and compliance support for VDAs under the Income-tax Act, 1961 and the Income-tax Act, 2025. We do not advise which coins to buy or sell, promote unregulated P2P channels, or act as a VDA exchange / FIU registration agent. Where FEMA, FIU, or criminal-law issues arise, we coordinate with specialist counsel. AIS often shows exchange TDS under erstwhile 194S / section 393(1) [Table Sl. No. 8(vi)] that does not match wallet exports — we reconcile that gap before Schedule VDA, we do not invent cost.
How an engagement runs
- 1Share exchange CSVs, wallet summaries, bank statements, and prior-year ITR if any
- 2We classify transfers, rebuild cost where records allow, and flag gaps early
- 3Draft Schedule VDA workings and §194S / §393(1) checklist (if you are a payer)
- 4Partner review, ITR filing / e-verification, and handoff of working papers
- 5Optional notice support if AIS or the department writes back
Crypto / VDA Tax FAQs
No. This desk is limited to Indian tax computation, books, TDS, and ITR disclosure for virtual digital assets. Investment or trading advice is out of scope.
For income up to 31 March 2026, cite the Income-tax Act, 1961 (e.g. Sections 115BBH and 194S). From 1 April 2026, the Income-tax Act, 2025 applies — special-rate VDA tax under Section 194 (Table S. No. 4) and VDA TDS under Section 393(1) [Table Sl. No. 8(vi)]. We cite both during the transition.
Under the VDA special regime, loss set-off is tightly restricted. We compute and disclose as the law requires and document the position — we do not invent set-offs that the statute does not allow.
We rebuild from available CSVs, wallet exports, and bank trails, and note residual gaps. Incomplete records increase notice risk — early gap analysis is part of the engagement.
Not automatically for every holder. GST may arise where the activity looks like a taxable supply or intermediary service. We flag GST risk and involve the GST desk when facts warrant — without forcing a registration you do not need.
Discuss your crypto / vda tax requirements
Speak directly with a PJRJ income tax specialist — we respond within one business day.