How to E-File ITR-3 Online for FY 2025-26 (AY 2026-27)?

Published: May 17, 2024
Last Updated: August 4, 2026

Written By

CA Ankit Agarwal

Head of Tax | KoinX

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If you run a crypto mining business, trade crypto futures and options, receive freelance payments in USDT, or provide crypto-related services as a business, ITR-2 is not the right form for you. The Income Tax Department (ITD) requires individuals and Hindu Undivided Families (HUFs) with business or professional income to file ITR-3 for these crypto income types.

Compared to ITR-2, ITR-3 is more detailed. It includes schedules for business income, a Balance Sheet, a Profit and Loss statement, and an expanded Schedule VDA. Unlike ITR-2, Schedule VDA in ITR-3 asks you to classify every crypto disposal as either business income or a capital gain. Based on your selection, the income is reported in either Schedule BP or Schedule CG, which directly affects how your tax liability is calculated.

This guide explains how to file ITR-3 for FY 2025-26 (AY 2026-27) if you have any of the seven crypto income types that require it. It covers everything from choosing the correct business code in Part A-GEN to completing Schedule VDA, Schedule BP, and Schedule FA (where applicable).

Key Takeaways

ITR-3 is required for seven specific crypto business income types, including large-scale mining with dedicated hardware, crypto F&O trading, salaried employees with qualifying crypto business activity, freelance income in crypto, crypto consultancy, OTC trading, and market-making. Trading frequency alone does not determine the form.
Schedule VDA in ITR-3 has a Column 3 that does not exist in ITR-2, each disposal must be classified as either business income or capital gain. Business income rows flow to Schedule BP Item 3g; capital gain rows flow to Schedule CG Item C2. Getting this classification wrong misclassifies the income before the return is submitted.
The non-audit deadline for ITR-3 is 31st August 2026, one month later than ITR-2, but filing after this date forfeits the right to carry forward business losses and permanently removes the option to choose the old tax regime for FY 2025-26.
Schedule FA is mandatory for any ITR-3 filer who held crypto on a foreign exchange, Binance, Bybit, Kraken, or any non-Indian platform, at any point during the calendar year ending 31st December 2025, regardless of whether any transaction occurred during the year.

ITR-3 Deadlines for FY 2025-26 (AY 2026-27)

The last date to file ITR-3 depends on whether your income needs a tax audit. If you miss the deadline, you may have to pay interest and penalties, and your tax refund or return processing may get delayed. Before filing, check the correct due date for your case for FY 2025-26 (AY 2026-27).

Filing Type	Deadline	Fee or Penalty
Original ITR-3 (Non-audit cases)	31st August 2026	No late fee if filed on time
Original ITR-3 – audit cases (turnover above Section 44AB threshold)	31st October 2026	No late fee if filed on time
Original ITR-3 for transfer pricing cases	30th November 2026	No late fee if filed on time
Tax audit report submission	30th September 2026	Required one month before the 31st October ITR-3 deadline for audit cases
Belated ITR-3 under Section 139(4)	31st December 2026	INR 5,000 under Section 234F; INR 1,000 if your total income is below INR 5 lakh
Revised ITR-3 under Section 139(5) (Updated: Budget 2026)	31st March 2027	No fee if filed before 31st December 2026. INR 5,000 under Section 234I if filed between 1st January 2027 and 31st March 2027; INR 1,000 if income is below INR 5 lakh
ITR-U, Updated Return under Section 139(8A)	31st March 2031, within 48 months of end of AY 2026-27	25% to 70% additional tax on aggregate tax and interest, depending on when filed

Note: Business income filers filing a belated ITR-3 after your applicable due date removes the option to choose the old tax regime for FY 2025-26. For a large-scale miner, F&O trader, or OTC operator with significant deductions to claim under Chapter VI-A, that forfeiture can cost substantially more than the INR 5,000 Section 234F late fee itself.

How Does the ITR-3 Form Actually Look Like for FY 2025-26?

ITR-3 is structured across four parts: Part A, Schedules, Part B, and Verification. For a crypto business income filer, most of Part A involves business-specific financial statements that do not exist in ITR-2. The schedules are where the filing work happens, and for the seven crypto income types this article covers, only a handful of them apply.

Part A

Part A of ITR-3 is divided into different sections based on your business and accounting requirements.

Part A-GEN: Captures general details such as the nature of your business, business code, residential status, and whether your accounts are subject to audit under Section 44AB.

Part A-BS: Must be completed if you maintain regular books of accounts and have a Balance Sheet.
No Account Case (Item 6 of Part A-BS): Applicable to taxpayers who do not maintain formal books of accounts, such as smaller traders.

Part A-P&L: Must be completed if you maintain regular books of accounts and prepare a Profit and Loss Account.

Part B-TI and Part B-TTI

These are aggregate all income heads and compute the final tax liability. For a crypto business income filer, both Profits and Gains of Business or Profession(PGBP) income from Schedule BP and capital gain income from Schedule CG may feed into Part B-TI simultaneously, depending on how Column 3 of Schedule VDA is filled.

The schedules are where ITR-3 diverges meaningfully from ITR-2. Seven apply directly to crypto business income filers:

Schedule BP

This schedule receives VDA business income from Schedule VDA Total A via Item 3g. This schedule does not exist in ITR-2. Every crypto disposal classified as business income in Column 3 of Schedule VDA flows here, not to Schedule CG.

Schedule VDA

It works similarly to ITR-2, with one critical addition. Column 4 requires the taxpayer to specify whether each disposal is classified as business income or capital gain. Total A rows flow to Schedule BP. Total B rows flow to Schedule CG. Getting this classification wrong sends VDA income to the incorrect schedule and produces an AIS mismatch before the return is submitted.

Schedule CG

This schedule receives VDA disposals classified as capital gains in Schedule VDA Total B. A large-scale miner who holds some tokens as investments and sells them may need both Schedule BP and Schedule CG populated from the same Schedule VDA, one for business income rows, one for capital gain rows.

Schedule OS

It is where staking rewards, airdrops, and hard forks are reported at INR Fair Market Value on the date of receipt. These are taxed at slab rate and do not go into Schedule VDA.

Schedule FA

This schedule is mandatory for any resident Indian who held crypto on a foreign exchange, like Binance, Bybit, Kraken, or any non-Indian platform, at any point during the calendar year ending 31st December 2025, regardless of whether any transaction occurred.

Schedule VI-A

This schedule lists the claims of deductions under Chapter VI-A. These reduce tax on salary and other income heads but do not reduce the 30% flat tax applied to VDA income under Section 115BBH.

Schedule CYLA

This schedule sets off current year losses across permitted income heads. VDA disposal losses cannot be set off against any income. However, for crypto F&O traders, speculative business losses from F&O activity can only be set off against other speculative business income in Schedule CYLA, not against non-speculative PGBP or salary.

Schedule DEP

It summarises depreciation on all business assets under the Income Tax Act, directly relevant to large-scale mining operators. Depreciation on mining rigs, ASIC hardware, GPUs, and supporting infrastructure is calculated here and flows into Schedule BP to reduce taxable business income.

Who Must File ITR-3 in FY 2025-26?

Filing ITR-3 does not depend on how frequently you trade or how many exchanges you use. Instead, it depends on whether your crypto activities are treated as a business or profession under the Income Tax Act. If your income falls into any of the seven crypto-related categories below, you must file ITR-3 for FY 2025-26 (AY 2026-27).

Operators of large-scale mining setups: Running a commercial mining operation with dedicated rigs, specialised hardware, and supporting software as an organised business activity is classified as PGBP. Casual miners without a dedicated setup do not fall in this category and file ITR-2 instead.
Traders of crypto Futures and Options contracts: All crypto F&O trading is treated as speculative business income under PGBP, regardless of how many contracts are traded or how often. A single F&O contract in FY 2025-26 is sufficient to require ITR-3.
Salaried employees with qualifying crypto business activity: A salaried individual who also operates a qualifying mining setup or trades crypto F&O must file ITR-3. The form accommodates salary income, PGBP income, and capital gains within a single return, ITR-2 cannot.
Freelancers earning income in crypto: Receiving cryptocurrency as payment for services rendered, design, development, writing, or any other freelance work, constitutes PGBP income under Section 28 of the Income Tax Act, 1961. The FMV of the crypto at the date of receipt is the taxable income figure.
Operators of a crypto consultancy or advisory business: Running a consultancy or advisory practice involving digital assets, portfolio advice, blockchain strategy, exchange operations guidance, is professional or business income under PGBP. ITR-3 is the prescribed form regardless of the scale of the practice.

Operators of OTC crypto trading services: Providing over-the-counter crypto trading services, buying and selling directly with counterparties outside an exchange platform, constitutes an organised business activity. The systematic, commercial nature of OTC operations places it squarely within PGBP.
Market makers earning crypto income: Earning income through market-making activities, providing liquidity, quoting bid-ask spreads, facilitating trades on exchanges or protocols, is classified as business income under PGBP. The structured, ongoing nature of market-making distinguishes it from passive investing.

What List of Documents You Need to File ITR-3 in FY 2025-26?

Before you start filing ITR-3, it is important to gather all the required documents given below. Doing so helps you avoid interruptions and reduces the chances of you making expensive mistakes.

For Salary Income

Form 16 issued by your employer showing salary paid, TDS deducted, and any perquisites received during FY 2025-26.
Form 12BA, if your employer provided non-monetary perquisites, including any crypto-based compensation.
Salary slips for the entire financial year if Form 16 has not yet been issued.

For Crypto Mining Business Income (Schedule BP)

Complete records of every token mined during FY 2025-26, including the date of mining, token name, quantity, and INR Fair Market Value (FMV) on the date of receipt.
Hardware purchase invoices, electricity bills, and maintenance records for your mining setup to maintain books of accounts under Section 44AA.
A depreciation schedule for mining rigs and supporting hardware under Schedule DEP.
GST registration certificate and GST returns if your annual mining turnover exceeds INR 20 lakh.
Bank statements showing all receipts and payments related to the mining business.

For Staking Rewards, Airdrops, Mining Income, and Hard Forks (Schedule OS)

Wallet transaction records showing the date and INR FMV of every staking reward, airdrop, hard fork token, and casual mining receipt. The FMV on the date of receipt is the taxable value under Income from Other Sources.

If any of these tokens were later sold, maintain a separate disposal record. The cost of acquisition will be the FMV that was already taxed when the tokens were received.
Platform statements from staking providers or DeFi protocols confirming the receipt date and quantity of tokens received.

For Freelance Income Received in Crypto (Schedule BP)

Complete transaction records showing the date and INR FMV of every crypto payment received for freelance services during FY 2025-26.
Client invoices for each freelance engagement, clearly stating the INR equivalent of the crypto payment received.
Bank statements and wallet records confirming receipt of every payment.
If you are opting for the Section 44ADA presumptive taxation scheme, keep a gross receipts summary confirming your eligibility within the INR 50 lakh or INR 75 lakh digital receipts threshold.

For Crypto Futures and Options Trading (Schedule BP - Speculative Business Income)

Complete trade history from every exchange used during FY 2025-26, including contract details, entry price, exit price, trade date, and the profit or loss for each contract.
Exchange-issued statements showing your total F&O turnover, which is required to determine whether a Section 44AB audit applies.
A Section 44AB turnover calculation based on the absolute value of all profits and losses across every F&O contract, rather than the net profit or loss.
If your turnover exceeds INR 1 crore, keep the audit report in Form 3CA or Form 3CB, along with Form 3CD. The audit report must be filed by 30 September 2026, one month before the 31 October 2026 ITR-3 filing deadline.

For Crypto Capital Gains (Schedule VDA Flowing to Schedule CG)

Complete transaction history from every exchange used during FY 2025-26, including the date of acquisition, date of disposal, cost of acquisition in INR, and sale consideration in INR for every crypto disposal.
TDS certificates or Form 26AS entries showing the 1% TDS deducted under Section 194S on each crypto disposal.
If you received crypto as a gift, keep the gift deed or other documented transfer record, along with the FMV on the date of receipt, as this becomes your cost of acquisition when you later dispose of the asset.

For Crypto Consultancy or Advisory Business Income (Schedule BP)

Client agreements and invoices for every consultancy or advisory engagement completed during FY 2025-26.
Bank statements and wallet records confirming all payments received in INR or crypto.
Records of allowable business expenses, including professional memberships, software subscriptions, and travel costs directly related to client engagements.
GST registration details and GST returns if your annual consultancy turnover exceeds INR 20 lakh.

For OTC Crypto Trading and Market-Making Income (Schedule BP)

Counterparty trade records for every OTC transaction, including the date, token, quantity, INR equivalent on the trade date, and the counterparty’s PAN.
Verified PAN details for every counterparty, as the absence of PAN may expose the transaction to scrutiny under Section 68 relating to unexplained cash credits.
Market-making activity logs showing bid-ask spread income, liquidity provision records, and any protocol-level rewards received.
Bank statements and wallet records reconciling all OTC trading and market-making receipts.

For Foreign Exchange Holdings (Schedule FA)

Account statements from every foreign crypto exchange, such as Binance, Bybit, Kraken, Coinbase, or any other non-Indian platform, showing the peak balance held at any point during FY 2025-26.
The INR equivalent of the peak balance, calculated using the RBI reference rate applicable on the relevant date.
Details of any income earned through foreign exchange accounts during the year, including staking rewards, disposal proceeds, or any other crypto income.

For Business Financial Statements (Part A-P&L and Part A-BS)

A Profit and Loss Statement for FY 2025-26 covering all business income and expenses if you maintain regular books of accounts under Section 44AA.
A Balance Sheet as on 31 March 2026, if you maintain regular books of accounts.
If you do not maintain regular books, keep the details required for Item 6 (No Account Case) under Part A-BS, including cash balance, bank balance, debtors, creditors, and stock-in-trade.

For TDS Verification Across All Income Types

Form 26AS downloaded from the income tax portal showing every TDS credit available against your PAN for FY 2025-26.
The Annual Information Statement (AIS) to compare the gross VDA transaction volume reported by the ITD with your own transaction records before completing Schedule VDA. Any mismatch is a common reason for a Section 143(1) notice for crypto business income filers.
Advance tax payment challans, if you paid advance tax during FY 2025-26. These are required where your total tax liability exceeds INR 10,000 for the year.
Self-assessment tax challans for any remaining tax liability paid before filing your ITR-3.

How to File ITR-3 Online With Crypto Income?

Filing ITR-3 as a crypto business income filer follows the same portal entry steps as any other return, but the schedule sequence inside the form is longer, and two steps unique to ITR-3 have no equivalent in ITR-2: the Column 3 classification decision in Schedule VDA and the business financial statements in Part A. The steps below follow the exact sequence the portal presents them.

Go to incometax.gov.in and log in using your PAN and password
Under the “e-File” tab, select “Income Tax Returns” and click “File Income Tax Return“
Choose Assessment Year 2026-27, select “Online” mode, and click “Continue“
In the next tab, click on Start New Filing.
Select your applicable status, “Individual” or “HUF“, and click “Continue“
Select “ITR-3” from the list of forms. If the portal suggests ITR-1, ITR-2, or ITR-4, override it manually, none of these contain Schedule BP or the full business financial statement schedules
Choose “Continue with ITR-3” and select whether you are filing as a new return, a revised return under Section 139(5), or a belated return under Section 139(4)
In Part A-GEN, confirm your personal details, name, PAN, Aadhaar, address, date of birth, and contact information. Most fields auto-populate. Select your residential status carefully, resident Indians who held crypto on foreign exchanges must tick “Yes” to the foreign asset question, which activates Schedule FA
In A19(b), confirm whether you have income from business or profession for AY 2026-27. Answering “Yes” activates the tax regime selection question. If you wish to opt for the old tax regime, you must have filed Form 10-IEA on or before your ITR-3 due date, this cannot be done inside the return itself. If Form 10-IEA was not filed on time, the new tax regime will apply automatically
In the Audit Information section (A20), confirm whether you are liable to maintain accounts under Section 44AA and whether you are liable for audit under Section 44AB. For crypto trading desk operators, select the correct turnover range, the absolute sum of all profits and losses across all trades, not the net figure. If audit is required, confirm that the audit report has been filed before submitting the return
Select the Nature of Business code in Part A-GEN. Use the correct code for your activity: Social Media Influencers (16021), F&O Trading (21010), frequent delivery-based crypto trading (21011), or speculative intraday trading (21009). Selecting the wrong code creates a mismatch with your income classification in Schedule BP
Complete Part A-BS (Balance Sheet) if you maintain regular books of accounts. For trading desk operators, OTC traders, and market makers who do not maintain formal books, use Item 6, the “No Account Case”, which requires cash balance, bank balance, debtors, creditors, and stock in trade as at 31st March 2026
Complete Part A-P&L (Profit and Loss Account) if regular books are maintained. For F&O traders, enter turnover from F&O trading at Items 12c and 12d of the Trading Account separately from other business income. Staking income received as part of the business operation is entered under “Other income” at Item 14
Navigate to Schedule S if you have salary income, enter gross salary figures from Form 16 and confirm TDS deducted by your employer before moving to business schedules
Navigate to Schedule DPM if your mining operation holds depreciable plant and machinery, ASIC rigs, GPUs, and supporting hardware. Enter the written-down value, additions during the year, and consideration received on disposals. The depreciation computed here feeds into Schedule DEP
Navigate to Schedule DOA for depreciation on other assets, buildings, furniture, and intangible assets used in the business. This also feeds into Schedule DEP
Navigate to Schedule DEP, the summary of depreciation across all assets. The total depreciation figure from Schedule DEP flows into Schedule BP at Item 12, reducing taxable business income
Navigate to Schedule BP, this is the core business income computation schedule for ITR-3. Enter your profit before tax from the Profit and Loss account at Item 1. At Item 3g, the portal will auto-populate the VDA business income total from Schedule VDA Total A once you complete Schedule VDA. Do not enter it manually here, fill Schedule VDA first, then return to verify Item 3g is correctly populated
Navigate to Schedule VDA, this is where every crypto disposal from FY 2025-26 is reported individually. Each row requires: Col 1 (Date of Acquisition), Col 2 (Date of Transfer), Col 3 (Head under which income is taxed, Business Income or Capital Gain), Col 4 (Cost of Acquisition), Col 5 (Consideration Received), Col 6 (Gain, Col 5 minus Col 4, nil if loss). Col 3 is the critical classification decision unique to ITR-3. Disposals from your mining business or trading desk go under “Business Income.” Disposals of tokens held as personal investments go under “Capital Gain.” Total A (Business Income rows) flows automatically to Schedule BP Item 3g. Total B (Capital Gain rows) flows automatically to Schedule CG Item C2
Navigate to Schedule CG, this receives VDA capital gain disposals from Schedule VDA Total B at Item C2. If you have other capital gains from shares, mutual funds, or property, complete those items in Schedule CG before confirming the total at C3
Navigate to Schedule OS, report staking rewards, airdrops, mining receipt income (for casual receipts not part of the organised mining business), and hard fork income here under Item 1e “Any other income.” Enter the INR Fair Market Value on the date of receipt. These are taxed at slab rate as Income from Other Sources. Do not enter these in Schedule VDA
Navigate to Schedule CYLA, set off current year losses across permitted income heads. For F&O traders with speculative business losses, these can only be set off against other speculative business income in this schedule. VDA disposal losses cannot be set off against any income head and do not appear in Schedule CYLA
Complete Schedule VI-A to claim deductions under Chapter VI-A, Section 80C, 80D, and others. These reduce tax on salary and other income heads but do not reduce the 30% flat tax applied to VDA income under Section 115BBH
Navigate to Schedule FA if you held crypto on any foreign exchange, Binance, Bybit, Kraken, Coinbase, or any non-Indian platform, at any point during the calendar year ending 31st December 2025. Schedule FA is mandatory regardless of whether any transaction occurred. Enter the peak balance held during the year, the INR equivalent at the RBI reference rate, and any income received from the foreign account during the year. Omitting Schedule FA is a disclosure violation independent of any tax liability
In Part B-TI, the portal auto-computes total income across all heads. Cross-check that VDA business income from Schedule BP (Item 3g) and VDA capital gain income from Schedule CG (Item C2) are both reflected correctly and under separate heads
In Part B-TTI, verify the tax computed on your VDA income at 30% under Section 115BBH. Cross-check the TDS credits at Part 20C, the 1% TDS deducted by exchanges under Section 194S should appear here, pulled from your Form 26AS. Any mismatch between the portal’s pre-filled TDS figure and your own transaction records must be reconciled before submitting. For foreign exchange and P2P trades where TDS was self-deducted via Form 26QE, verify those credits are also reflected
Confirm your bank account details for refund purposes. Add all bank accounts held during FY 2025-26, not just the account for refund credit
Preview the return, download the ITR-3 draft, and review Schedule VDA Column 3 classifications, Schedule BP Item 3g, and Schedule FA entries one final time before submission
Submit the return. For accounts subject to audit under Section 44AB, e-verification using a Digital Signature Certificate is mandatory; EVC or Aadhaar OTP are not accepted for audit cases. For non-audit cases, complete e-verification using Aadhaar OTP, net banking, or DSC within 30 days of submission. An unverified return is treated as invalid after 30 days

Note: If your accounts are subject to audit under Section 44AB, the audit report in Form 3CA or 3CB with Form 3CD must be filed by 30th September 2026, one month before the 31st October 2026 ITR-3 deadline. The return cannot be submitted before the audit report is filed.

Tracking Column 3 classifications across dozens of disposals, reconciling TDS credits from multiple exchanges, and ensuring Schedule BP Item 3g matches Schedule VDA Total A is where manual filing breaks down. KoinX generates an ITR-ready Schedule VDA report pre-formatted for ITR-3, so every figure lands in the correct schedule before you open the portal.

How Can KoinX Help You File ITR-3?

Filing ITR-3 for crypto business income involves much more than reporting transactions. Whether you have mining income, crypto futures and options, freelance payments in crypto, staking rewards, or capital gains, each income type requires separate calculations, the correct ITR schedule, and accurate TDS reconciliation. Managing data across multiple exchanges, wallets, and spreadsheets can easily lead to reporting errors that delay filing or trigger notices.

KoinX simplifies this process with 800+ exchange and wallet integrations that prepare accurate crypto tax reports for Indian tax compliance.

Complete Tax Report: Structured for ITR-3 Business Income Filers

The KoinX Complete Tax Report is the most detailed output available for Indian users. It separates capital gains from crypto disposals, derivatives income from F&O trading, and other crypto income, staking rewards, airdrops, and mining receipts, into distinct sections that map directly to the three schedule destinations in ITR-3: Schedule BP, Schedule CG via Schedule VDA, and Schedule OS. Each section includes transaction-level records your CA can verify against Form 26AS before filing.

Crypto Derivatives Summary: F&O Turnover Calculated Correctly

For crypto F&O traders, the KoinX Complete Tax Report includes a dedicated Summary of Income from Crypto Derivatives. It calculates total realised futures profit, total realised futures losses, and total futures turnover, the absolute sum of profits and losses, not the net figure, which is the calculation the ITD uses for Section 44AB audit threshold assessment. Funding fees paid and funding interest received are also captured separately, giving your CA the exact figures needed for Schedule BP without any manual reconstruction from raw exchange data.

ITR-Ready Schedule VDA Report for ITR-3

KoinX generates a Schedule VDA report formatted specifically for the ITR-3 portal. Every disposal is listed individually with date of acquisition, date of transfer, cost of acquisition in INR, consideration received, and the resulting gain, in the exact column structure the ITR-3 portal requires. The Head of Income column maps each disposal to either business income or capital gain, pre-filling the Column 3 classification decision that no other report on the market addresses for ITR-3 filers.

Section 194S TDS Tracking Across All Exchanges

KoinX tracks the 1% TDS deducted under Section 194S on every VDA disposal across all connected exchanges. The TDS summary in the Complete Tax Report surfaces each deduction alongside the corresponding Schedule VDA entry, making it straightforward to cross-check against Form 26AS before filing. For F&O traders on foreign platforms where TDS was self-deducted via Form 26QE, those figures are captured separately so every credit is accounted for in Part B-TTI.

Whether you run a commercial mining operation, trade crypto F&O contracts, or earn freelance income in USDT, generate your Complete Tax Report on KoinX and arrive at the ITR-3 portal with figures pre-mapped to the correct schedules.

Conclusion

ITR-3 is the right tax return if your crypto income is treated as business income instead of investment income. This applies to activities such as large-scale mining, crypto F&O trading, freelance work paid in crypto, OTC trading, market-making, or crypto consultancy. However, each type of income must be reported in the correct section of the return. Business-related crypto disposals go in Schedule VDA and Schedule BP, capital gains are reported in Schedule CG, while staking rewards, airdrops, and similar receipts belong in Schedule OS.

Even after identifying the correct schedules, filing ITR-3 can take time because you need to combine transactions from different exchanges and wallets, calculate F&O turnover, and classify every transaction correctly. KoinX simplifies this process by automatically generating an ITR-ready Schedule VDA report, calculating crypto derivatives turnover, and preparing tax reports that help you file ITR-3 with greater accuracy and confidence. So get started with KoinX today and you can file your return with greater accuracy and confidence.

Frequently Asked Questions

What is the difference between ITR-2 and ITR-3 for crypto income?

ITR-2 is for passive investors, salaried individuals, spot traders, and staking income recipients who hold crypto as an investment. ITR-3 is prescribed when crypto activity constitutes a business or profession, large-scale mining, F&O trading, freelance income in crypto, OTC trading, market-making, or consultancy. The determining factor is the nature of the activity, not the volume of transactions.

Does trading crypto frequently mean I must file ITR-3?

No. Frequency of spot trading alone does not push you into ITR-3. The deciding factor is whether your activity constitutes a business, running a mining operation with dedicated hardware, trading F&O contracts, or earning crypto through freelance or consultancy work. A passive investor executing hundreds of spot trades still files ITR-2, not ITR-3.

I filed ITR-2 last year but realised that my crypto F&O income should have gone in ITR-3. What do I do now?

File a revised return under Section 139(5) using ITR-3 before 31st March 2027. A revised return corrects both the form type and the income classification, F&O income must go into Schedule BP as speculative business income, not Schedule CG. File voluntarily before the ITD identifies the mismatch through AIS cross-referencing, as self-correction is treated more favourably than a prompted correction.

What is Column 3 of Schedule VDA in ITR-3 and how do I fill it correctly?

Column 3 is unique to ITR-3. It requires you to classify each VDA disposal as either business income or capital gain. Disposals from your mining business, F&O trading, OTC activity, or freelance crypto work are classified as business income and flow to Schedule BP. Disposals of tokens held as personal investments alongside your business activity are classified as capital gains and flow to Schedule CG.

My mining operation crossed INR 1 crore in turnover this year. Do I need a tax audit?

Yes. Section 44AB requires a tax audit when total sales, turnover, or gross receipts exceed INR 1 crore. For mining operators, turnover includes the INR Fair Market Value of all tokens mined during FY 2025-26. The audit report in Form 3CA or 3CB with Form 3CD must be filed by 30th September 2026, one month before the 31st October 2026 ITR-3 deadline. Missing the audit report means the return cannot be submitted.

I trade crypto F&O on Binance and also hold Bitcoin as an investment. Do I report both in ITR-3?

Yes, both in the same ITR-3 return, but in different schedules. The F&O trading income is speculative business income and goes into Schedule BP via Schedule VDA Column 3 classified as business income. The Bitcoin disposal is a capital gain and goes into Schedule CG via Schedule VDA Column 3 classified as capital gain. ITR-3 accommodates both income heads within a single return.

I receive consulting fees in ETH from foreign clients. Do I need to fill Schedule FA as well as Schedule BP?

Yes, both apply independently. The ETH received as consulting fees is PGBP income under Section 28, reported in Schedule BP at the INR Fair Market Value on the date of receipt. If you hold any crypto on a foreign exchange or in a foreign wallet at any point during the calendar year ending 31st December 2025, Schedule FA is also mandatory, regardless of whether you made any transactions. The two schedules serve different purposes and neither substitutes the other.

What happens if I do not maintain books of accounts for my crypto business income in ITR-3?

Under Section 44AA, individuals and HUFs carrying on a crypto business must maintain books of accounts if income exceeds INR 2,50,000 or turnover exceeds INR 25 lakh in any of the three preceding years. Failure to maintain required books attracts a penalty of INR 25,000 under Section 271A. Smaller operators below both thresholds may use the “No Account Case” option in Part A-BS of ITR-3.