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# Do you invest in Bitcoins or other cryptos? Which ITR form to use for filing your return?
- URL: https://www.clinkwealth.com/itr-2026-invested-in-bitcoin-or-crypto-heres-whether-to-file-itr-2-or-itr-3/
- Published: 2026-11-01T18:00:13.000Z
- Updated: 2026-11-03T09:14:32.000Z
- Author: Vimal Chander Joshi

Did you invest in Bitcoin, Ethereum, Tether or any other cryptocurrency in FY 2025-26 and make a capital gain? If so, you need to declare that income in 'Schedule VDA' of your income tax return (ITR). You also need to file in the right ITR form. ITR-1 doesn't have a VDA schedule, so you'll have to use either ITR-2 or ITR-3.

**Where can you declare crypto income?**

Income from selling cryptocurrencies goes in the Virtual Digital Asset (VDA) schedule. Tax law calls cryptocurrencies VDAs.

CA Chirag Chauhan, founder of CA Chauhan & Company, a Mumbai-based firm, listed the rules to keep in mind. "Crypto income is taxed at a flat 30%. You can't set off losses against gains. And 1% TDS is cut when you make the transaction. You can check the TDS amount in your AIS/TIS," he said.

**Which ITR form should you use?**

It depends on where your income comes from. In general, ITR-2 is for people with salary income, and ITR-3 is for people whose main income is from business or a profession.

CA Pratibha Goyal, co-founder of PD Gupta & Company, a Delhi-based CA firm, said crypto income alone doesn't decide this. "What matters is the overall nature of your income. If you hold crypto as an investment and only have salary, house property or other non-business income, ITR-2 may apply. But if you have business or professional income, like intraday trading, F&O trading or professional receipts, you must file ITR-3, even if your crypto is just an investment. The same goes if your crypto activity is itself a business," she said.