How to File ITR When You Have Income from Crypto, Stocks & Mutual Funds

With more individuals investing in digital assets and financial markets, tax filing has become more complex. If you're wondering can we file ITR for cryptocurrency, or how to report cryptocurrency on ITR return, this guide will help you understand everything — including how to show income from mutual funds in ITR and how to file ITR for share market income.

1. Can We File ITR for Cryptocurrency in India?

Yes, you must file ITR if you have traded, invested, or earned from cryptocurrency. As per the Finance Act, 2022, income from Virtual Digital Assets (VDAs) — including Bitcoin, Ethereum, NFTs, etc. — is taxed under a new regime.

• The income is taxed at 30% flat, regardless of your income slab.
• No deduction (except cost of acquisition) is allowed.
• Losses from crypto cannot be set off against any other income.

So, if you’re asking, "can we file ITR for cryptocurrency income?" — not only can you, but you're legally required to.

2. How Much Crypto Profit Is Tax-Free?

There is no tax-free limit for profits from cryptocurrency.

Even if you earn ₹1,000 profit, it’s taxable at 30%. The entire gain is taxed, and TDS at 1% (Section 194S) applies if the transaction exceeds ₹10,000 (₹50,000 in some cases).

So, to answer clearly: How much crypto profit is tax free? → ₹0.

3. How to Report Cryptocurrency on ITR Return

When it comes to how to report cryptocurrency on ITR return, follow this:

• ITR Form: Use ITR-2 (if capital gains) or ITR-3 (if trading is regular).
• Report crypto income under the Schedule VDA in the ITR form.
• Mention:
  • Type of VDA (e.g., Bitcoin, NFT)
  • Date of acquisition and sale
  • Sale and purchase value
  • Net gain/loss

If you’ve received crypto as a gift or for services, it must be shown under Other Sources or Business Income, depending on the nature.

4. How to Show Income from Mutual Fund in ITR (As per Finance Act 2024 & 2025)

The taxation of mutual funds has changed significantly in the past two years:

a) Equity Mutual Funds

• Short-term capital gains (STCG): Taxed at 20% (for holding <12 months)
• Long-term capital gains (LTCG): Taxed at 12.5% for gains exceeding ₹1.25 lakh (holding >12 months)

b) Debt Mutual Funds

• As per Finance Act 2023, and continuing in 2024 and 2025:
  • All gains are treated as short-term (even if held >36 months)
  • Taxed at applicable slab rate (no indexation benefit)
  • Applies to funds with <35% equity allocation

c) International Mutual Funds & Gold Funds

• Also taxed like debt funds — at slab rates without indexation.

To show this:

• Use ITR-2 or ITR-3
• Fill Schedule CG for capital gains
• Report dividends in Schedule OS (Other Sources)

Get capital gain reports from CAMS/KFinTech or fund house for accuracy.

5. How to File ITR for Share Market Income (Updated FY 2024-25)

Two scenarios apply depending on your purpose:

a) For Investors (Capital Gains)

• Use ITR-2
• Short-Term Capital Gains (STCG): 20% for listed shares (held <12 months)
• Long-Term Capital Gains (LTCG): 12.5% on gains exceeding ₹1.25 lakh (held >12 months) if STT is paid at the time of purchase and sale of shares.
• Losses can be carried forward up to 8 years, if filed within due date

b) For Traders (Business Income)

• Use ITR-3
• Income from intraday, futures & options (F&O), or frequent trading is business income
• Taxed as per slab rates
• May use Presumptive Taxation (44AD) for F&O trading if criteria met

You must also disclose:

• Turnover (especially for F&O)
• Profit/Loss summary
• Books of accounts, if applicable

6. Important Tips While Filing ITR with These Incomes

• Always match your income with Form 26AS and AIS (Annual Information Statement)
• Report TDS on crypto under Section 194S
• Maintain separate capital gain records for mutual funds and equity
• Use a reliable filing tool or professional for mixed or high-volume transactions

Conclusion

Filing ITR with income from cryptocurrency, mutual funds, and shares is now more regulated and requires clear disclosure.

• Can we file ITR for cryptocurrency? → Yes, and it’s mandatory.
• How to report cryptocurrency on ITR return? → Use Schedule VDA in ITR-2 or ITR-3.
• How much crypto profit is tax free? → ₹0 — all profits taxed at 30%.
• How to show income from mutual fund in ITR? → Use Schedule CG & OS; follow new slab rate rules for debt funds.
• How to file ITR for share market income? → ITR-2 for capital gains; ITR-3 for trading.

Need assistance with filing? Contact us for personalized support, fast and compliant filing!