The simplest and most reliable way to handle crypto taxes in India is to work with a crypto-friendly Chartered Accountant (CA) who understands the current tax framework for Virtual Digital Assets (VDAs).
If you are using Kosh for off-ramp (receiving payments from outside India)
Payments received from outside India — such as salary, consulting fees, or freelancing income — are treated as foreign inward remittances. Here is what you should do:
Request a Foreign Inward Remittance Certificate (FIRC) from your bank to validate each transaction. See Can I get the FIRC Certificate for my international payment? for how to request one through Kosh.
Keep all invoices and transaction receipts from Kosh as supporting documentation
A CA will classify your income correctly — whether as salary, business income, or capital gains — and ensure it is filed under the correct ITR form (ITR-2 or ITR-3)
Why you need a CA
Crypto taxation in India is still evolving and misclassification can attract penalties
Section 115BBH applies a flat 30% tax on gains from Virtual Digital Assets
TDS under Section 194S applies to certain crypto transactions
A CA ensures your filings are compliant with all applicable provisions
This article is for general informational purposes only and does not constitute legal or tax advice. The tax treatment of Virtual Digital Assets depends on your individual circumstances. Please consult a qualified Chartered Accountant before filing your return.