Yes, SunCrypto reports to the Income Tax Department. And every eligible trade you placed since July 2022 has been individually recorded against your PAN. That record goes deeper than most active traders realise. The 1% TDS deducted on each sale is SunCrypto meeting its own Section 194S obligation, not a confirmation that yours has been met. What the exchange transmits is your full annual buy-and-sell volume, which rarely reflects your actual gain.
SunCrypto deducts that 1% TDS on every VDA transaction above Indian Rupees 10,000 and deposits it against your PAN. That TDS credit appears in Form 26AS, but it tells only part of the story. Alongside TDS, a Statement of Financial Transactions (SFT) is also filed directly with the ITD, and this data inflates your Annual Information Statement (AIS).
What SunCrypto filed covers the exchange’s obligation to the ITD. Your own obligation remains separate, and it requires filing Schedule VDA in ITR-2 or ITR-3. The figure that goes into Schedule VDA is your actual gain from your transaction history, not the AIS total, which reflects volume rather than proceeds. Active traders who file the AIS total instead of their reconciled gain draw a Section 143(1) intimation.
Key Takeaways
- SunCrypto is a FIU-IND registered crypto exchange and deducts 1% TDS under Section 194S on every eligible VDA transfer above the reporting threshold.
- Your SunCrypto trade data appears in your AIS, but the figure shown may represent total trade volume rather than your actual taxable gain.
- An AIS mismatch above Indian Rupees 1 lakh can trigger a Section 148(A) intimation under Project Insight’s automated cross-checking system.
- Budget 2026 tightened exchange reporting obligations from FY 2025-26, making SunCrypto’s ITD reporting more comprehensive than in any prior financial year.
- The 1% TDS SunCrypto deducts is an advance payment only, and filing Schedule VDA in ITR-2 or ITR-3 is a separate mandatory obligation.
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How SunCrypto Reports to the Income Tax Department
SunCrypto’s reporting to the ITD goes beyond the 1% TDS you see on each sell. Three distinct channels operate in parallel, where each feeds different data to the department.
Reporting Channel | What SunCrypto Files | What the ITD Receives |
Section 194S TDS | Deducts 1% TDS on every qualifying VDA transfer above the annual threshold | TDS credit recorded in Form 26AS and AIS against your PAN |
SFT Filing | Submits Statement of Financial Transactions covering your combined buy-and-sell volume for a particular financial year | ITD receives total trade volume, not net gain. This is the primary source of AIS inflation for SunCrypto accounts. |
AIS via Project Insight | PAN-linked account data aggregated into the ITD’s AIS portal automatically | ITD cross-references AIS entries against every filed ITR without manual review |
Note: Under Budget 2026 reporting norms, SunCrypto is required to report crypto-asset transaction statements under Section 509(1). Non-compliance is penalized under Section 446. Delayed reporting attracts a penalty of INR 200 per day, and inaccurate reporting attracts an INR 50,000 penalty.
How the ITD Tracks Your SunCrypto Transactions
The ITD’s picture of your SunCrypto account is not built only from what SunCrypto reports. There are independent systems that collect your crypto trading data, apart from what Suncrypto has filed.
KYC and PAN-Linked Account Data
SunCrypto’s KYC process links every account to a verified PAN before trading begins, creating a permanent identifier that connects all exchange activity to a specific taxpayer. When SunCrypto files TDS or submits its annual SFT, both are deposited against this PAN. The ITD’s Insight Portal holds a consolidated view of every exchange, bank, and asset account that has filed against your identifier. A trade from FY 2022-23 sits in that record today, alongside every other transaction tied to your PAN.
AIS and Project Insight
The Annual Information Statement brings together every SFT entry and TDS deduction SunCrypto filed against your PAN. The ITD compares this document against your filed ITR automatically. Project Insight is the CBDT’s automated compliance monitoring system. Comparing AIS figures against each taxpayer’s filed Schedule VDA is its primary function. A discrepancy above Indian Rupees 1 lakh triggers a compliance NUDGE to your e-filing portal, flagging the mismatch before formal proceedings begin.
Why Your AIS May Overstate Your Crypto Income
SunCrypto’s SFT filing reports what you transacted, not what you earned. For active traders, the gap between those two figures is where the AIS mismatch begins. When SunCrypto files its SFT, it submits the gross value of every buy and sell you executed during the financial year. That combined figure lands in your AIS as a single entry.
Let’s understand this through an example. Karan is a trader who has been active on SunCrypto throughout the FY 2025-26:
Detail | Figure |
Karan’s total trade volume on SunCrypto, FY 2025-26 (combined buys and sells) | INR 12,00,000 |
Actual net gain (sale price minus cost of acquisition) | INR 45,000 |
Figure shown in AIS from SunCrypto SFT filing | INR 12,00,000 |
Figure Karan entered in Schedule VDA (correct) | INR 45,000 |
Tax at 30% under Section 115BBH on INR 45,000 | INR 13,500 |
4% health and education cess on INR 13,500 | INR 540 |
Total tax payable | INR 14,040 |
AIS vs ITR discrepancy | INR 11,55,000 – exceeds Rs 1 lakh threshold. |
Outcome | If Karan doesn’t reconcile the discrepancy in his ITR, a Section 148A NUDGE notice can be issued. |
Why Does It Happen?
When SunCrypto submits its SFT, it reports the combined value of every buy and sell executed during the financial year, not the net gain from those trades. Karan is not a tax evader, and his Schedule VDA declaration of INR 45,000 is accurate. The mismatch exists because SFT data records gross transaction value rather than net gain. This is a structural feature of how SunCrypto files data, not an error in his AIS.
How Common Is It?
The AIS inflation problem affects every SunCrypto user who executes more than a handful of buy-and-sell cycles in a financial year. The more frequently you trade on SunCrypto, the wider the gap between your AIS figure and your actual gain. A passive investor who made three trades in FY 2025-26 may see a minor discrepancy. An active trader who executed 200 trades can face a discrepancy figure of lakhs.
What Is the Consequence?
A discrepancy above INR 1 lakh between your AIS entry and your Schedule VDA declaration triggers a compliance NUDGE. If you leave it unaddressed, it can escalate to a Section 148A reassessment notice. Discrepancy alone doesn’t trigger the notice; it happens if you don’t reconcile that gap in your ITR. So make sure you file a reconciliation note alongside your ITR to avoid triggering the notice.
How to Download Your SunCrypto TDS Summary, Trade Report & Crypto Report
Three documents from SunCrypto’s Download Reports section cover everything needed for accurate crypto tax filing. All three reports can be downloaded from the same “Download Report” section on the SunCrypto App. These reports are delivered to your registered email address in CSV or Excel format within 30 minutes of requesting.
Downloading Your TDS Summary
The TDS Summary provides an itemised breakdown of the 1% tax deducted on each qualifying sale, confirmed by SunCrypto against your PAN.
- Open the “SunCrypto App”.
- Tap on the “Profile icon” in the bottom-right corner of the home page.
- Select “Download Reports” from the menu.
- Tap on “TDS Summary”.
- Select the financial year.
- Tap the “Get Report” button.
Downloading Your Crypto Report
The Crypto Report contains all the withdrawals, deposits, and asset movements of your SunCrypto account for the selected financial year. To download your SunCrypto Crypto Report, you follow similar steps:
- Tap on “Crypto Report” in the same “Download Report” section.
- Select the financial year.
- Tap the “Get Report” button.
Downloading Your Trade Report
The Trade Report contains your full buy-and-sell transaction history for the selected financial year. It is the primary input used to calculate your actual gain per disposal before filing Schedule VDA. To Download your Trade Summary:
- Tap on “Trade Summary” in the same “Download Report” section.
- Select the financial year.
- Tap the “Get Report” button.
SunCrypto will process your request and email the CSV or Excel spreadsheet to your registered email address within 30 minutes. If you find all of this overwhelming and exhausting, there’s a direct method that won’t even require you to download any reports from SunCrypto. You just need to sync your SunCrypto account with KoinX, and it’ll take care of everything for you.
Common Misconceptions About SunCrypto and ITD Reporting
Most tax-filing mistakes do not occur because investors intentionally hide their crypto activity. They happen because many users assume that if SunCrypto has already deducted TDS or maintains their transaction records, there is little left for them to do. In reality, exchange reporting and tax filing are two separate obligations. Understanding where one ends and the other begins can help you avoid notices, penalties, and costly filing errors.
The ITD Only Knows About My Activity If I Withdraw to My Bank Account
Many investors assume their crypto activity remains invisible until they convert it into INR and withdraw funds. However, SunCrypto reports specified transaction information to the ITD and deducts TDS on qualifying VDA transfers under Section 194S. Since your account is linked to your PAN and KYC details, the ITD already has visibility into your exchange activity. Your responsibility is to ensure the information reported in your ITR matches your actual crypto transactions.
The 1% TDS Deducted by SunCrypto Is My Final Crypto Tax
Many investors mistakenly treat TDS as a complete settlement of their tax liability. In reality, TDS is only an advance tax payment that is adjusted when you file your return. Your actual tax liability is determined under Section 115BBH, which taxes crypto gains at 30% plus applicable cess. This means you must still calculate your gains, report every taxable disposal in Schedule VDA, and file the appropriate ITR. Failure to do so can result in penalties and interest, regardless of the TDS already deposited against your PAN.
The Amount Showing in AIS Is the Income I Need to Report
AIS data is often misunderstood because many taxpayers assume the reported figure represents taxable profit. In practice, the amount appearing in AIS is generally linked to transaction values reported by the exchange rather than your actual gains. Your taxable income must be calculated separately using your transaction records and acquisition costs. If you directly copy the AIS figure into Schedule VDA, you may end up reporting a much higher income than you actually earned and paying more tax than necessary. AIS should be used as a verification tool, not as a substitute for gain calculations.
If No TDS Was Deducted, the Transaction Is Not Taxable
The presence or absence of TDS does not determine whether a transaction is taxable. Taxability depends on whether a taxable VDA disposal has taken place and whether that disposal generated a gain. Investors sometimes overlook transactions simply because no TDS was deducted at the time. However, gains arising from taxable crypto disposals remain subject to Section 115BBH and must be reported in Schedule VDA. Relying solely on TDS deductions to identify taxable events can lead to incomplete reporting.
Crypto-to-Crypto Swaps Are Not Taxable Until I Convert to INR
One of the most expensive mistakes crypto investors make is assuming tax applies only when funds reach their bank account. Under India’s crypto tax framework, a taxable event occurs whenever a Virtual Digital Asset is disposed of. If you exchanged Bitcoin for USDT on SunCrypto, it’ll be treated as a disposal of Bitcoin, even though no INR is involved. Any profit from that transaction can be taxable at 30%.
How to Report Your SunCrypto Trades Correctly
The following three steps separate a SunCrypto return that clears Project Insight from one that attracts a notice from the ITD. Each step relies on the figures in your Trade Report, not the figures in your AIS.
Step 1: Calculate Your Actual Gain
Every VDA disposal on SunCrypto is a taxable event under Section 115BBH. The gain per disposal is the sale price minus the cost of acquisition, not the gross transaction volume. Download your SunCrypto Trade Report as described in the previous section. Each VDA sell generates a disposal gain equal to the sale price minus the cost of acquisition. The total of these figures across all your SunCrypto trades for the FY is your Schedule VDA declaration.
Step 2: Reconcile Against Your AIS
With the calculated gain total, compare it against the SunCrypto entry in your AIS. Prepare a reconciliation statement showing how the AIS figure translates into your reported taxable gains. Keep this reconciliation statement handy in case the system triggers a Section 148(A) notice so you already have an explanation against the gap.
Step 3: File Schedule VDA in ITR-2 or ITR-3
Schedule VDA requires each VDA disposal to be reported individually, using gain-per-disposal figures and TDS credits. Make sure you report each SunCrypto disposal using the gain figures from your Trade Report, not the AIS total. The TDS credit from SunCrypto goes into the TDS schedule of your ITR-2 or ITR-3.
If you’re an active crypto trader on SunCrypto, then you can avoid all of these hassles by simply integrating your SunCrypto account with KoinX. From calculating your gains to preparing an ITR-ready report, KoinX will do it all for you automatically and with accuracy. Unlike most domestic exchanges, SunCrypto offers a direct integration with KoinX in three simple steps:
- Open the “SunCrypto App”.
- Go to the “Profile” section and tap “Tax Reports KoinX”.
- Tap “Agree to Proceed,” and you will be redirected to KoinX.
- Click “Generate Crypto Tax Report”, then click on the “Integrations” tab.
- Search for and select SunCrypto, then click Connect SunCrypto.
You’ll probably have to wait a few minutes for the sync to complete. Once the sync completes, all your SunCrypto transactions will be imported on KoinX.
Conclusion
SunCrypto’s 1% TDS under Section 194S has been reaching the ITD against your PAN since July 2022. The SFT it files each year feed directly into the AIS figure you see on the portal. For active traders, that AIS figure rarely matches their actual gain, and the unreconciled gap is what triggers a Section 148A reassessment.
The first step is to open your Annual Information Statement on the ITD portal and locate the SunCrypto entry. Compare it against the total gain you calculated from your downloaded Trade Report. A gap above Indian Rupees 1 lakh needs a reconciliation note; if already filed without one, a revised return under Section 139(5) applies.
For active SunCrypto traders doing this reconciliation every year, the volume-versus-proceeds mismatch, TDS credit matching, and Schedule VDA output each need to align. KoinX handles all three from a single import of your SunCrypto Trade Report, producing the ITR-ready file and reconciliation note in one step.
Frequently Asked Questions
How do I check what SunCrypto has reported to the ITD?
SunCrypto’s data appears in your Annual Information Statement (AIS) on the ITD e-filing portal at incometaxindia.gov.in. Log in with your PAN credentials, navigate to the AIS section, and locate the SunCrypto entry under the TDS and SFT categories. The TDS entry shows deductions under Section 194S; the SFT entry shows your total transaction volume for the financial year.
Will I receive a tax notice if I traded on SunCrypto but never filed an ITR?
Yes. SunCrypto’s SFT and TDS filings are deposited against your PAN at the ITD regardless of whether you submitted an ITR. Project Insight flags PANs with SunCrypto AIS entries and no matching Schedule VDA declaration. The likely outcome is a Section 148A reassessment notice.
I filed my ITR using the AIS figure for SunCrypto. Is that a problem?
Most likely. SunCrypto’s AIS entry reflects total transaction volume, not actual gain, so the figure you declared as income is almost certainly overstated. A revised return under Section 139(5) corrects the error, removes the Section 148A risk, and lets you claim a refund if you overpaid tax.
Does SunCrypto issue Form 16A for TDS deducted on my trades?
No. SunCrypto does not issue Form 16A for Section 194S TDS deductions, as most Indian crypto exchanges do not provide this certificate directly. The TDS record appears in your Form 26AS and AIS on the ITD portal, which is the authoritative document you use to calculate the TDS credit in your ITR.
