My colleague tells me my calculation is completely wrong and that I will get an automated tax notice from the CPC Who is right? Did I file the right way?

Question

I am a salaried employee earning ₹22 Lakhs per year. Last financial year, I ventured into crypto trading. I made a profit of ₹3,0,000 trading Bitcoin on an Indian exchange, but I also lost ₹2,0,0,000 on three trades where the coins crashed. Net-net, I made a profit of ₹1,00,000 from crypto.
When preparing my own ITR, I subtracted the ₹2 Lakh loss from the ₹3 Lakh gain and added the net ₹1,00,000 to my taxable salary income. My colleague tells me my calculation is completely wrong and that I will get an automated tax notice from the CPC (Central Processing Center). Who is right? Did I file the right way?

Omkar H. · Answer

This is the single biggest trap for retail investors filing their own returns. The tax portal's automated validation engine will catch this immediately because Schedule VDA requires line-by-line acquisition costs and sale consideration details. You cannot simply input net figures.

My colleague tells me my calculation is completely wrong and that I will get an automated tax notice from the CPC Who is right? Did I file the right way?

1 Comment

Add a comment