Law checked 21 August 2026

Published 8 August 2026

4 min read

Written and maintained by the CryptoKar team

Glossary

ITR-2 and ITR-3 for Crypto

Both forms carry Schedule VDA, so the question is not where the crypto goes but what the rest of your activity looks like. Investment income points at ITR-2. Business income, including derivatives, points at ITR-3.

Key highlights

How to choose between them.

ITR-2

Crypto held as an investment

Schedule VDA inside it

ITR-3

Business income, derivatives, fees in crypto

Schedule BP as well

Both

Carry Schedule VDA, one row per disposal

Per-trade reporting

Choosing Between the Two

A filer with salary, some interest and a set of crypto disposals meets Schedule VDA inside ITR-2. Nothing about the crypto itself forces a business form, because the flat 30% under Section 115BBH applies whether you traded once or two hundred times.

ITR-3 is the one to use where there is business or professional income to report. Crypto derivatives are the common trigger, since the common reading treats those results as business income in Schedule BP, and so are fees you earned in tokens for work you did.

Which Schedules Fill Up

Disposals go to Schedule VDA in either form, one row per disposal, each carrying the acquisition date, the transfer date, the cost of acquisition and the consideration. Rewards and airdrops go to Schedule OS at slab rate. Crypto paid as salary goes to Schedule S. Derivatives and fees go to Schedule BP.

The 1% withheld under Section 194S is claimed in the TDS schedule, matched against Form 26AS rather than against an exchange statement, because only what the deductor actually deposited can be claimed.

Frequently Asked Questions

The questions this term raises most often.

ITR-2 where crypto is held as an investment alongside ordinary income, and ITR-3 where there is business or professional income to report, which includes crypto derivatives and fees earned in tokens. Both forms carry Schedule VDA.

No. ITR-1 does not carry Schedule VDA, and every disposal has to be reported there regardless of size.

The flat 30% under Section 115BBH applies to a VDA transfer however often you trade, so frequency alone does not move spot disposals into Schedule BP. Derivatives are the case where the business reading is the common one.

This page states the law and what CryptoKar computes from your trade history. It is not tax advice. Judgment calls belong with a chartered accountant. Sections and dates here were read against the source on 21 August 2026.

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