Crypto investing in India isn’t just about profits anymore — it’s about staying compliant.
Since the introduction of Section 115BBH (30% flat tax on VDAs) and Section 194S (1% TDS on crypto transfers), the Income Tax Department has made it crystal clear: 💼
“Crypto isn’t invisible. It’s taxable.”
So if you’re trading, staking, minting NFTs, or earning airdrops, choosing the right crypto tax specialist is no longer optional — it’s essential.
Let’s dive deep into how to pick one who actually understands the Indian crypto landscape. ⚖️
🧩 What Exactly Is a “Crypto Tax Specialist” in India?
In India, anyone can claim to “know crypto taxes,” but only a few truly do.
Here are the 4 real categories you’ll come across 👇
| Type | Who They Are | Ideal For | Watch Out For |
|---|---|---|---|
| 🧑💼 CA Firms / Tax Advocates (Crypto Focus) | Qualified professionals aware of 115BBH & 194S nuances | High-volume traders, DeFi users, founders | Slightly premium fees |
| 👨💻 General CAs / Accountants | Handle regular filings (salary, business, capital gains) | Small CEX traders | May misclassify NFTs, staking, or P2P |
| 📄 TRPs / ERIs (Registered Filers) | Govt-authorized to file ITRs | Routine compliance | May lack crypto depth |
| ⚙️ Crypto Tax Software Providers | Apps that import exchange data | Multi-exchange traders | Still need human CA to validate |
✅ Best Choice: A registered CA or tax advocate who specializes in crypto, ideally with real case experience handling VDA scrutiny and TDS mismatches.”
🚫 Why You Shouldn’t Pick “Any CA”
Crypto taxation is not regular capital gains.
Here’s where generic accountants go wrong ❌
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❌ Set-off Mistake: They offset crypto losses against stock or salary income — illegal under 115BBH.
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❌ Ignoring TDS: Forget to check buyer/seller responsibility under 194S.
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❌ Missing DeFi/Airdrops: They don’t classify staking or airdrop income.
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❌ No Documentation: They file your ITR but skip transaction working papers — leaving you exposed if audited later.
👉 Result? You might save a few thousand today but risk notices, penalties, or reassessment tomorrow.
🧾 10-Point Checklist to Identify the Right Specialist
Use this like a truth detector 🔍 when interviewing any CA or consultant:
| ✅ Question | 🎯 What a Good Specialist Says | 💡 Why It Matters |
|---|---|---|
| 1️⃣ How do you treat crypto gains? | “Flat 30% tax under 115BBH + cess; no loss set-off.” | Confirms law awareness |
| 2️⃣ How do you handle TDS (194S)? | “Depends on buyer/seller role; threshold ₹10k–₹50k.” | Prevents TDS mismatch |
| 3️⃣ Can you read data from multiple exchanges? | “Yes, via CSV/API import & INR conversion.” | Avoids reporting gaps |
| 4️⃣ How do you value non-INR tokens? | “At FMV using INR rate at transaction time.” | Ensures fair valuation |
| 5️⃣ How do you treat staking/airdrops/NFTs? | “Receipt = income; later sale = transfer.” | Correctly splits stages |
| 6️⃣ Do you give working papers? | “Yes, with full transaction log + TDS proof.” | Vital for scrutiny |
| 7️⃣ Experience with crypto notices? | “Handled 133(6) and TDS queries.” | Practical confidence |
| 8️⃣ Can you sync with my regular CA? | “Yes, we’ll share crypto schedules.” | Smooth overall filing |
| 9️⃣ Data protection steps? | “Encrypted storage + NDA.” | Protects privacy |
| 🔟 Transparent fee? | “Flat / volume-based, no hidden cost.” | Builds trust |
💡 Signs You’ve Found a Trustworthy Expert
✅ Talks in sections (115BBH, 194S, 2(47A)), not vague terms.
✅ Asks for source proofs – wallet addresses, exchange statements, 26AS.
✅ Provides audit-ready papers (trade logs, TDS working, ITR mapping).
✅ Admits where the law is grey (e.g., DeFi rewards).
✅ Keeps up with CBDT circulars and FAQs.
⚠️ Red Flags – Walk Away If You Hear This
🚩 “We’ll show your crypto losses against salary.”
🚩 “TDS not needed for P2P deals.”
🚩 “Just send screenshots; no CSV required.”
🚩 “We’ll show it as business to claim deductions.”
🚩 “We don’t provide detailed workings.”
These are shortcuts that lead to long-term headaches.
A wrong classification today = a notice two years later.
💸 Understanding Fee Structure
| Step | What’s Included | Typical Pricing Insight |
|---|---|---|
| 📋 Onboarding | KYC, scope definition, NDA | ₹1,000–₹5,000 |
| 🧮 Data Normalisation | Consolidate CSVs, convert tokens to INR | ₹2–₹5 per txn |
| 📑 Tax Calculation | 30% computation, TDS mapping | ₹5,000–₹25,000 |
| 🧾 Filing | Schedule VDA & final ITR | ₹3,000–₹10,000 |
| ⚖️ Notice Handling | Reply & representation | Per-hour / per-case |
💡 Pro Tip: Ask for a maximum cap before work starts. Transparency builds long-term trust.
📁 What You Should Keep Ready
Before meeting your CA, organise these 📂
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PAN & Aadhaar
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Bank statements (crypto on/off ramps)
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Exchange CSVs (WazirX, CoinDCX, Binance, etc.)
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Wallet addresses (MetaMask, Solana, TON, etc.)
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AIS, TIS, and Form 26AS
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OTC/P2P proofs
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Notes on staking, NFTs, airdrops
Being prepared = saving hours of back-and-forth ⏱️
⚙️ The Perfect Engagement Flow (Step-by-Step)
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☎️ Initial Call: Discuss trade volume & FY scope
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🧾 Quote & Agreement: Clear deliverables & pricing
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📂 Data Upload: Exchange/wallet data, 26AS
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🧮 Reconciliation: Match INR legs, tag TDS & self-transfers
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📘 Report Review: You get a draft ledger + summary
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🧾 Final Filing: Submitted under Schedule VDA
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🧷 Post-Filing Kit: All working papers & audit notes
A good specialist never skips steps 4 or 7 — that’s what separates professionals from fillers.
⚖️ Quick Comparison Table
| Factor | 🧑💼 CA (Crypto Expert) | 🧾 General CA | 💻 Software + Reviewer |
|---|---|---|---|
| Legal Accuracy | ⭐⭐⭐⭐ | ⭐⭐ | ⭐⭐⭐ |
| Handles DeFi/NFTs | ✅ | ❌ | ✅ |
| Represents in Notices | ✅ | ✅ | ❌ |
| Cost | 💰💰💰 | 💰💰 | 💰 |
| Best For | Active traders, founders | Salaried investors | Multi-exchange users |
🧠 Why This Advice Matters
Unlike generic “crypto tax blogs,” this guide is:
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💯 India-specific, reflecting real CBDT and Income Tax Act frameworks.
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⚖️ Legally grounded — focuses on audit-proof filings.
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🔐 Actionable — gives checklists, not clichés.
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🧾 Written from practice, not theory.
If you follow this approach, you’ll not only file correctly — you’ll sleep better knowing your crypto records can survive a tax audit.
🚀 5 Steps to Act Right Now
1️⃣ Map every exchange, wallet, and OTC trade.
2️⃣ Shortlist 3 crypto-savvy tax professionals.
3️⃣ Run them through the 10-point checklist.
4️⃣ Finalize one who documents everything.
5️⃣ Do quarterly check-ins — not annual panic.
Because in crypto taxes, clarity today saves chaos tomorrow. ⚡
✍️ Final Word
Your crypto journey deserves a specialist who treats compliance as seriously as you treat profits.
The right expert doesn’t just file returns — they protect your financial reputation. 🛡️
So, don’t settle for “just a CA.”
Find the crypto tax professional who thinks like a trader, speaks like a lawyer, and files like a perfectionist.
