Published 8 August 2026
4 min read
Written and maintained by the CryptoKar team
Glossary
Schedule FA and Offshore Holdings
Schedule FA is where foreign assets are reported in an Indian return. Whether a balance sitting on a crypto platform outside India belongs there is not a settled rule, because it turns on how the holding is characterised.
Key highlights
What is settled, and what is not.
- Facts
Decide whether an offshore balance is reportable
Not a general rule
- 30%
Still applies to the gain, wherever the platform sits
Section 115BBH
- Apr 2027
CARF starts moving offshore data
Between tax authorities
The Charge Does Not Depend on the Platform
A resident is taxed on worldwide income, so a gain made on an offshore exchange is charged under Section 115BBH exactly as a domestic one is: a flat 30% with 4% cess, cost of acquisition as the only deduction, and no set-off for a loss.
What differs offshore is the deduction at source. Where no Indian platform sits in the middle, the 1% is not being withheld for you, and that does not remove the tax on the gain itself.
The Reporting Question
Whether the balance is a foreign asset for Schedule FA depends on how the holding is characterised, and that is a facts question rather than a rule. It belongs with a chartered accountant who can see the account, the custody arrangement and the platform's terms.
What is settled is the direction of travel. Platform statements inside India begin on 1 April 2026 under Section 509(1), and CARF starts moving offshore account data between tax authorities from April 2027.
Frequently Asked Questions
The questions this term raises most often.
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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