Schedule VDA – Virtual Digital Asset AY 2026-27

Schedule VDA – Virtual Digital Asset AY 2026-27

Schedule VDA in the Income Tax Return (ITR) reports income arising from the transfer of Virtual Digital Assets (VDAs). It requires taxpayers to furnish detailed transaction-wise information for every transfer of VDAs during the financial year. The information to be disclosed includes the serial number of each transaction, the date of acquisition and the date of transfer of the asset, the head under which the income will be taxed (as capital gains), the cost of acquisition (with specific instructions if the asset was received as a gift), and the consideration received from the transfer.

The final income from the transfer is computed by deducting the cost of acquisition from the consideration received. In the event of a loss, it is to be reported as nil. The total of all positive amounts from such transactions will be carried to the relevant Schedule of the ITR.

Section 115BBH, Section 2(47A) and Section 194S of the Income-tax Act, 1961

Virtual Digital Asset (VDA) covers crypto assets, Non-fungible tokens (NFTs), and any other digital asset. It does not cover Indian currency, CBDCs, Foreign currency, and notified digital assets. The income from the transfer of VDA is computed without deduction of any expenditure (other than the cost of acquisition, if any) or allowance or set-off of any loss and the income so computed is taxable at the flat rate of 30% plus surcharge and cess.

This schedule applies to ITR-2, ITR-3, ITR-5, ITR-6 and ITR-7.