Person dealing in stocks and crypto

Person dealing in stocks and crypto

📈 ITR Filing for Stock Market & Crypto Investors in India – 2025 Guide
If you're investing or trading in stocks, mutual funds, crypto, or digital assets, you must be aware that these incomes are taxable and need to be reported in your Income Tax Return (ITR).
Many individuals in India believe profits from stocks or cryptocurrency are not taxable until withdrawn, or that gains from foreign exchanges go unnoticed. In reality, the Income Tax Department tracks your transactions through brokerages, exchanges, and AIS/Form 26AS, and non-compliance can result in penalties, scrutiny, or notices.
This blog provides a complete guide on how to file ITR for stock and crypto gains in FY 2024–25, including applicable tax rates, forms, deductions, and how our expert team can ensure your compliance is done right.

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📌 Who Should File ITR for Stock and Crypto Income?
You must file ITR if you earn income through:
•    Stock trading (intraday, short-term, long-term)
•    Mutual fund investments (debt/equity)
•    Dividends from stocks
•    Crypto trading (Bitcoin, Ethereum, NFTs, etc.)
•    F&O or derivatives trading
•    Foreign investments (e.g., US stocks via Zerodha, INDmoney)
📌 Filing is mandatory if total income (including capital gains or losses) exceeds ₹2.5 lakh in a financial year.

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🧾 Applicable ITR Forms for Stock/Crypto Traders
ITR-2: For investors (capital gains from stocks, crypto, mutual funds)
ITR-3: For traders (frequent intraday, F&O, crypto trading — treated as business income)
ITR-4: If opting for presumptive income (not ideal for regular traders or crypto investors)
📌 Choosing the wrong form may lead to defective return notices — let us help select the right one.

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💹 How Are Stocks and Mutual Fund Gains Taxed?
1. Equity Shares & Mutual Funds (More than 12 Months Holding)
•    Taxed as Long-Term Capital Gains (LTCG)
•    10% tax on gains above ₹1 lakh per year
•    No indexation benefit
2. Equity or Mutual Funds (Less than 12 Months)
•    Taxed as Short-Term Capital Gains (STCG)
•    Flat 15% tax
3. Intraday Trading
•    Treated as speculative business income
•    Taxed at normal slab rates
4. Futures & Options (F&O)
•    Treated as non-speculative business income
•    Taxed at normal slab rates
•    Books of accounts & audit may be applicable

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🌐 How is Crypto Taxed in India?
As per Section 115BBH, income from Virtual Digital Assets (VDAs), including cryptocurrencies and NFTs, is taxed strictly.
Transaction Type    Tax Treatment
Profits from buying/selling crypto    Flat 30% tax on gains (no slab rates)
TDS on transactions    1% TDS on every crypto transaction > ₹10,000
Loss from crypto sale    Cannot offset or carry forward
Transfer of NFTs or foreign tokens    Treated same as crypto under VDA rules
📌 No deductions allowed except the cost of acquisition. You must report crypto wallets, even if the income is zero.

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📋 Documents Required for ITR Filing
Here’s a quick checklist for filing tax returns involving stocks and crypto:
•    PAN, Aadhaar
•    Broker summary report (Zerodha, Groww, Upstox, etc.)
•    Mutual fund capital gain statement (CAMS/KFintech)
•    Crypto transaction report (WazirX, CoinDCX, Binance, etc.)
•    Interest/dividend income proof
•    Form 26AS & AIS (tax credit and transaction records)
•    Foreign asset details (if investing in global stocks)
•    Trading P&L report (for F&O/intraday)
✅ We help in preparing capital gains statements, reconciling tax reports, and calculating accurate liability.

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🧮 Audit Requirement for Traders
If you are trading regularly (intraday or F&O), you may need a tax audit under Section 44AB if:
•    Turnover exceeds ₹10 crore (with digital transactions)
•    Or, income is lower than 6% of turnover, and you opt out of a presumptive scheme
📌 Audit must be done by a Chartered Accountant, and Form 3CD/3CB must be filed.

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❌ Common Mistakes to Avoid
Mistake    Impact
Using ITR-1 for capital gains    Return is defective and may be rejected
Not declaring crypto income    Risk of penalty and prosecution under VDA provisions
Ignoring foreign stocks or exchanges    Black Money Act non-compliance
Not maintaining trade logs or proofs    Cannot justify gains/losses during scrutiny
Missing audit requirements    ₹1.5 lakh+ penalty under Section 271B
✅ Our team ensures all compliance and reporting are handled with precision.

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💼 Why Choose Us for Your Stocks & Crypto ITR Filing?
We help investors, traders, and crypto enthusiasts file accurate, audit-proof tax returns:
•    ✅ Capital gains computation for stocks & MFs
•    ✅ Business income declaration for traders
•    ✅ Crypto tax reporting under Section 115BBH
•    ✅ TDS adjustment and refund claims
•    ✅ DTAA claims for foreign platforms (like eToro, Coinbase)
📞 Invested in stocks or crypto this year?
Let us help you file it right — legally, accurately, and stress-free.

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🏁 Final Thoughts
With the rise of digital investing, the Income Tax Department has tightened compliance around stocks, mutual funds, and cryptocurrency. Whether you’re an occasional investor or a daily trader, accurate ITR filing is a must.
✅ Avoid penalties. File your stock and crypto ITR with expert help today.