Crypto Consulting Services in India –
Cryptocurrency Tax Advisory, ITR Filing and VDA Compliance
Cryptocurrency has moved from a fringe investment to a mainstream asset class in India. The 30% flat tax under Section 115BBH, the no-loss-set-off rule, and TDS obligations under Section 194S make professional crypto consulting services essential — not optional.
Overview
What Are Crypto Consulting Services?
Millions of individuals in India now hold Bitcoin, Ethereum, and other virtual digital assets. However, the tax rules that apply to these assets are strict, specific, and carry no room for error. N D Savla & Associates provides crypto consulting services for individual investors, active traders, crypto businesses, and exchanges across India.
Our cryptocurrency tax advisory covers everything from computing VDA income correctly and filing Schedule VDA in the ITR, to handling TDS on peer-to-peer transactions, advising on crypto received as gifts or airdrops, and ensuring compliance with the new Form 167 reporting requirements under the Income Tax Rules 2026. As a qualified CA firm with deep expertise in Indian income tax law, we deliver crypto consulting services that are grounded in the actual provisions of the Income Tax Act — not generic blockchain advisory.
The Income Tax Department has been issuing notices to taxpayers who transacted in crypto but did not declare VDA income in their ITR, or where TDS credits in Form 26AS exceed reported income. Non-declaration, wrong ITR form, or missed Schedule VDA entries invite scrutiny, interest, and penalties. We assess your full VDA position before filing to ensure accurate declaration every time.
Tax Framework
How India Taxes Cryptocurrency – Section 115BBH and Virtual Digital Assets
Before engaging any crypto consulting services, every investor and trader needs to understand the core tax framework. India introduced a specific tax regime for virtual digital assets in Finance Act 2022, effective from FY 2022-23. The rules have not changed materially since then — and they are unambiguous.
Any income from transfer of a VDA — Bitcoin, Ethereum, Solana, NFTs — is taxed at a flat 30% plus surcharge and cess. No holding period distinction. No deduction allowed other than cost of acquisition.
VDA losses cannot be set off against any other income — not salary, not business, not other capital gains. Losses also cannot be carried forward to future years. Each transaction must be computed individually.
TDS at 1% on every VDA transfer. Exchanges deduct automatically on platform trades. For P2P, the buyer must deduct TDS before paying the seller — failure makes buyer liable for the amount, interest and penalties.
Trading fees, exchange fees, advisory fees, and all other expenses are NOT deductible against VDA gains. Only cost of acquisition is allowed — one of the most restrictive tax regimes for any asset class in India.
Quick Reference
Cryptocurrency Tax in India – Quick Reference by Transaction Type
Different types of crypto transactions trigger different tax treatments. Understanding these distinctions is the foundation of effective crypto consulting services for Indian investors.
| Transaction Type | Tax Section | Tax Rate | TDS (Sec 194S) | Loss Set-Off? |
|---|---|---|---|---|
| Sale of crypto on exchange (Bitcoin, ETH, altcoins) | Section 115BBH | 30% + SC + cess | 1% by exchange | No |
| P2P crypto sale (buyer to seller, off-exchange) | Section 115BBH | 30% + SC + cess | 1% by buyer | No |
| Crypto received as gift from non-relative (FMV > ₹50,000) | Sec 56(2)(x) at receipt; Sec 115BBH on sale | Taxable at receipt + 30% on gain | 1% when later sold | No |
| Airdrop received (FMV > ₹50,000, non-relative) | Sec 56(2)(x) at receipt; Sec 115BBH on sale | FMV as other income + 30% on gain | 1% when sold | No |
| Crypto received as salary / professional fees | Sec 17 (salary) or Sec 28 (business) at receipt | Slab rate + 30% on sale gain | 1% when sold | No |
| NFT sale | Section 115BBH (NFTs treated as VDA) | 30% + SC + cess | 1% applicable | No |
| Mining income (crypto earned by mining) | Sec 28 at mining; Sec 115BBH on sale | Business rate + 30% on sale gain | 1% when sold | Limited |
ITR Filing for Crypto
ITR Filing for Cryptocurrency Income – Schedule VDA
Reporting cryptocurrency income correctly in the ITR is one of the most complex aspects of crypto consulting services in India. The ITR requires transaction-level disclosure in Schedule VDA — not just a lump sum.
Which ITR Form for Crypto Income?
What Schedule VDA Requires
Form 167 – New Crypto Reporting Under Income Tax Rules 2026
Who Needs This Service
Who Needs Crypto Consulting Services in India?
Crypto consulting services are relevant for a much wider range of people than most realise. If any of the following situations apply to you, professional tax advisory on your VDA positions is necessary.
Our Services
What Our Crypto Consulting Services Cover
Our crypto consulting services span the complete lifecycle of cryptocurrency tax and compliance in India — from planning before you transact, to filing after the year ends, to responding if the Income Tax Department raises a query.
VDA Tax Computation and ITR Filing
P2P and TDS Compliance
Crypto Tax Planning and Structuring
Income Tax Notice Response for Crypto
For NRIs
Crypto Tax for NRIs – Section 115BBH and DTAA
NRIs who hold cryptocurrency — whether purchased in India or abroad — face a specific set of compliance questions. If the VDA was purchased while a resident and sold after becoming an NRI, the taxability in India depends on the source of income. Generally, gains from VDAs with a nexus to India are taxable in India at 30% under Section 115BBH.
However, DTAA provisions with the country of residence may provide relief in certain situations — particularly where the VDA is held and traded entirely outside India. Our crypto consulting services for NRIs work alongside our broader NRI tax filing and DTAA advisory practice to ensure the right position is taken in the Indian ITR.
Taxed in India at 30%
Where the VDA has a nexus to India — purchased in India, held on an Indian exchange, or sold to an Indian buyer — Section 115BBH applies regardless of residential status. 30% flat tax plus surcharge and cess. TDS under Section 194S applies as for residents.
Treaty Benefits May Apply
Where the VDA is held and traded entirely outside India, DTAA provisions with the country of residence may provide relief from double taxation. The right position depends on the specific treaty, source of gain, and residential status during the year. Requires case-by-case analysis.
Related Services
Related Tax and Compliance Services
Our crypto consulting services connect to the wider tax compliance ecosystem for individuals and businesses.
Hold Crypto in India? Get Your Tax Right Before the Department Does.
Section 115BBH computation • Schedule VDA ITR filing • P2P TDS (Sec 194S) • Airdrop and gift tax • DeFi income • NRI crypto tax • Income tax notice response • Form 167 compliance.
+91 98190 00511 | +91 91670 58000 | +91 98190 00445 | nainitsavla@savlagroup.in | natasha@savlagroup.in
Contact UsF.A.Q.
Under Section 115BBH, all income from the transfer of a virtual digital asset is taxed at a flat 30% rate, plus applicable surcharge and cess. This applies regardless of the holding period — there is no short-term or long-term distinction for VDAs. The only deduction allowed is the cost of acquisition. Losses from one VDA cannot offset gains from another. Crypto consulting services from a qualified CA ensure the correct computation and declaration of VDA income in the ITR. For the full ITR filing process, see our income tax e-filing service.
Section 194S requires TDS at 1% on every VDA transfer. Exchanges deduct it automatically on platform trades. For P2P transactions, the buyer must deduct and deposit TDS — failure to do so makes the buyer liable for the amount, plus interest under Section 201(1A). This TDS shows up in the seller’s Form 26AS and is claimed as a credit in the ITR. Crypto consulting services include complete P2P TDS guidance. Our TDS on crypto for P2P transactions page explains the full compliance procedure.
No — Section 115BBH explicitly prohibits it. A loss on one VDA cannot reduce gains on another VDA. VDA losses cannot offset salary, business profits, capital gains from shares, or any other income. They also cannot be carried forward to future years. This makes accurate transaction-by-transaction computation critical — which is why crypto consulting services that include trade-level data analysis are valuable for active traders with large portfolios. Our income tax e-filing service handles Schedule VDA for all trading volumes.
The applicable ITR form depends on your overall income profile. Salaried individuals with crypto gains use ITR-2. Business owners or freelancers with crypto income use ITR-3. Each ITR requires Schedule VDA with transaction-level details. Choosing the wrong ITR form triggers a defective return notice under Section 139(9). As part of our crypto consulting services, we determine the correct ITR form and handle the complete filing. If you have already received a defective return notice, our income tax notice service manages the response.
Yes — if the fair market value of the received VDA exceeds Rs. 50,000 and it comes from a non-relative, it is taxable as other income under Section 56(2)(x) at the time of receipt. When the VDA is subsequently sold, the 30% tax under Section 115BBH applies on the gain over the FMV at the time of receipt, which becomes the cost of acquisition. This dual taxation makes gifted and airdropped crypto one of the more complex areas covered by crypto consulting services. For NRIs receiving gifted crypto with India nexus, our NRI tax filing service covers the complete filing obligation.
