While filling the ITR form in VDA section do I need to average the cost for buy & sell trade & then fill the numbers or what?
E. G. I bought 10 QTY at 20 price & another 10 qty at same price or at 19 price & sell it after 1 year - selling 5 qty at 20, another 15 at 20 price & remaining qty at same price each making 2 buy trades & 3 sell trades at the same buy & sell date
So in this case do I avg out the prices or add 3 separate entries in ITR?
@Quicko can u please help as I hav 2 buy trades & 3 sales transactions with diff qtys & at same prices on same dates
IMO, the cost basis would be FIFO, same as stocks.
In India, the cost basis for capital assets such as stocks is determined through the FIFO (first-in first-out) method. It’s reasonable to assume that you can determine your cost basis in cryptocurrency using the same method.
When you dispose of cryptocurrency, your cost basis will be that of the first coins that you acquired.
Yes I Know just giving example which I have as below
I bought lats say BRISE coin on 4th March 2024 - 1000 QTY at price 15 same day I again bought 100 qty at price 15 later on I sell suppose 10th April 2024 500 QTY at price 100, same day another 2 sell trades at price 100 with diff qty one with 250 qty & another sell at same price & remaining aty of 250
So in this case 2 buy trades & 3 trades so 1st 2 buy & sell trades r setoff but 3rd sell transaction is pending as I setoff buy trades with 2 sell trades per FIFO
The in 3rd case buy price wud be 15 & sell price wud be 100 with buy QTY 1000 & sell QTY 250?
As per my understanding I wud go ahead with this but profit on this will be calculated as per tax slab & that I need to fill 3 transaction entries is it?
As for 3rd sell transaction if I consider first buy price with 1000 qty & last sell transaction of 250 then will it not get rejected?
Hi @Amey1,
In the VDA section of the ITR, you don’t need to average out the prices. Instead, you should report each trade separately, reflecting the buy and sell details for each transaction, including the corresponding quantities and prices.
Hope this help!