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Crypto Purchases Declaration in ITR?

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Manoj Punjabi

Accountant

383 Points Posted on 14 July 2022

Sir

Do I have to declare Crypto purchases in ITR of FY 21-22 (AY 22-23).

eg. I purchased Bitcoins - Qty 9 units, in FY 21-22, no sales, I am just holding that, no sales transaction in FY 21-22.

Do I have to declare holdings in ITR form, which ITR form should I use.

secondly cost of purchases is not possible to get, as units were bought in p to p trades in very small quantities, it is difficult to identify & trace all those transactions from bank statements.

Exchange has removed those details from their site.

Please guide.

Replies (6)

Quick Summary

This discussion clarifies whether crypto purchases made in FY 21-22 need to be declared in your Income Tax Return (ITR), even if no sales occurred. The consensus is that simply holding cryptocurrency purchased during the financial year does not require declaration in the ITR unless it's part of business income. You only need to declare crypto when it's sold, triggering a capital gains tax event. The difficulty in tracing small P2P purchase transactions was also acknowledged.