I'm a high volume meme coin trader with over 100,000+ transactions on 20+ wallets

I have imported them all onto koinly only for my tax report to show 0 capital gains when this is incorrect, i had to pay an extra $1000+ due to having so many transactions and now it's showing as no gains or losses!

Realize gains on crypto → crypto trades? is ON

In my transactions tab, NO Fiat > Crypto or Crypto > Fiat is not showing

there support bot isn't any help, does anyone have a solution thankyou.

Paid alot of money to get this done and having no help, its hurting my brain :/

Will I get a 1099-da if I buy bitcoin then send the bitcoin to someone else right after I buy it? Is any of that considered a taxable event? Considering All I do is buy it then send it to someone else.

I accidentally put a dollar into bitcoin on cash app. I didn’t know what to do so I withdrew it out for 94 cents will I have to do anything tax related on it or because it’s so low they won’t do anything?

Hi everyone,

I'm looking for guidance from CAs or people who have dealt with similar situations.

I'm a salaried professional from India. Between July last year and March this year, I got heavily involved in trading Gold (CFDs/Forex), Bitcoin, and a few other instruments through offshore platforms like Exness and XM. Unfortunately, I ended up with an overall net loss of around ₹40–45 lakhs.

During this period, there were a lot of high-value transactions:

Large credit card spends and personal loans used for funding trading.

Bank transfers from friends who temporarily helped me with funds.

Multiple deposits and withdrawals between my bank account and Exness/XM.

Around ₹10–15 lakhs was withdrawn from the brokers back into my bank account and later redeposited for further trading.

I also did a few Binance P2P transactions.

I'm not trying to hide anything—I just want to ensure I have proper documentation if the Income Tax Department ever asks for an explanation.

My questions are:

What documents should I collect and preserve?

Bank statements?

Broker account statements (Exness/XM)?

Trade history?

Credit card statements?

Binance P2P history?

Chats or proof of transfers from friends?

Since the withdrawals were largely redeposited and I ended up with a substantial net loss, how should I explain the large credits in my bank account if questioned?

Is it advisable to prepare a reconciliation showing:

Source of every deposit,

Every withdrawal,

Trading P&L,

Fund flow between bank accounts, brokers, and crypto exchanges?

Should I consult a CA experienced in offshore forex/crypto before filing my ITR, or is maintaining proper documentation generally sufficient?

I'm looking for compliance guidance and want to avoid unnecessary scrutiny by maintaining the correct records and filing accurately. Any advice from CAs or people who have gone through something similar would be greatly appreciated.

For 2025, I have not yet filed my tax return. An extension was filed so I’m good until Oct. I have been Logging into IRS.Gov to view my account. When i view the “Information return documents” section for 2025. It shows everything I have on my end. Like my Edward Jones 1099 DIV, Edward Jones 1099 INT, Edward Jones 1099-R, and 1099-NEC Nonemployee Compensation for some freelance work I did for a company. What is NOT shown are the two 1099-DA’s I received from Coinbase and Crypto.com. I’m going to file and include everything including my 1099-DA’s. Is there a chance the IRS did not receive them since everything I was expecting is listed/shown on the IRS site except the 1099-DA’s?? Has anyone else looked to see their 1099-DA is shown on your IRS account under Information Return Documents?

Most crypto bros think that if they have not been tax compliant in their jurisdiction they are not able to cash-out. This is wrong.

Sure there is the automatic exchange of information between your tax residency and your bank account, however if you plan on becoming tax compliant through a voluntary tax disclosure while you are preparing your compliance documentation for the bank.

Amongst the crypto community it is very normal for people to have not declared their taxes, especially if they started early. As back in 2011, most people were not treating it as a serious investment most did not know where it would be today.

When you are introduced to a private bank by a trusted third party, the bank is comfortable with you getting your new tax residency documentation after your account is opened or if you are becoming tax compliant through a voluntary tax disclosure as long as you are about to or in the process of becoming tax compliant you can open and cash-out before the taxes are due.

Since the automatic exchange of information era, Swiss banks require some form of tax conformity from clients. What's poorly understood is what "conformity" can mean in practice. At certain institutions and this depends heavily on the bank, the jurisdiction, and the specific facts it does not have to mean "every past year already settled." It can mean the client is demonstrably in the process of becoming compliant: tax counsel engaged, a voluntary disclosure or regularization initiated, or a residency change properly sequenced, all with a paper trail.

I've seen onboarding with Swiss private banks happen in parallel with a disclosure or a change in tax residency. Many people choose more tax friendly jurisdictions such as Monaco or Dubai. I have written a post about obtaining residency in Monaco with crypto origin wealth (private banks help you obtain residency):

https://www.reddit.com/r/Monaco/s/6Ey0AJ5P04

Remember that even fully compliant holders struggle here everyone knows the frozen-funds and closed-account stories from retail off-ramps (CEX to retail bank at large volumes). That's precisely why people go to private banks, and why they don't show up empty-handed. The approach that gets through compliance committee at the bank is a professionally prepared source-of-wealth file: chronological origin-of-wealth narrative, wallet lists with proof of control, independent forensic screening, surviving records with gaps explained, where relevant, a concrete, documented process for fixing a tax situation that isn't currently in order as opposed to a vague intention to sort it out someday..

Important note: this is not "you don't need to pay tax," and it varies enormously by country and institution. None of it is tax, legal, or banking advice this situation requires actual advisers in the actual jurisdictions involved.

TLDR; I've struggled with reconciling missing purchase history for 3 ledgers, and cannot figure it out for the life of me

I've done a fair amount of staking, where I receive an equivalent of a staking receipt token. Almost all of staking transactions were properly categorized by either the software or myself

That leaves the 3 incorrect coins. I've pored over the transactions and cannot figure out why they're tripping a zero cost basis trigger

Here's what I've done to check:

• Ensure individual transactions are properly categorized (I receive the staked token, I send the staking deposit)
• Grouped the transactions together to show they're all part of the same thing
• Compared them to other staking transactions of the same coin to find any discrepancies. I couldn't find any
  • Both the correct AND incorrect ones show a "Zero Cost Buy" under the "Staking Deposit" category. In both cases, the amount staked is the EXACT same as the "Zero Cost Buy". Neither show a date/time for the zero cost transaction.
• Ungrouped them, but properly tagged their categories
• Regrouped them into a single transaction

Here's a screenshot of 2 transactions. The top one is "correct" and the bottom one is tagged "missing cost basis"

This has been dogging me for days. So I'd really appreciate any insight you have!

Thank you so much

How do you track all your holdings for CGT purposes when it comes to selling?

Hi, I received a total of 54,000 INR in crypto last financial year. I received it in BingX as USDT in multiple transactions. For cashing it out, I moved that to CoinDCX and didn't notice any capital gain. So, while calculating the cost of acquisition, which amount should I provide? And will there be any issue if there's a difference of 200 to 400 because it's confusing while checking BingX transactions? Everything is clear on CoinDCX.

For whatever reason it seems the software gets more confusing, different versions that are not clear on what the differences are and etc. I'm using the website and just kinda going along but this is NOT what I'm used to. This feels more like I'm filling out taxes myself vs being walked through it.

Ive always preferred the desktop software (then I don't have to pay if I need the info in a few years) and am tempted to buy that and avoid this online mess.

Anyway, if I track my crypto individually do I still need to provide the 1099-da coinbase sent me?

What version of software would you recommend for someone with a lot of crypto transactions and I want to provide the final form myself.

I track my profit and loss using 3rd party software that I use to generate my tax documents. Do I still need to provide the 1099-DA I received from coinbase or can skip it and just do my crypto reporting with that one document?

I wasnt thinking ahead and have a mountain of memecoin transactions that I don't know if I can even track 100%.

I'm working on getting compliant with IRS and the whole crypto tax situation is a huge hurdle for me and is discouraging me to get this resolved.

I can get the records for the main exchanges ive used. And can find the history to what wallets I sent crypto to. But I'm not sure I have it all complete.

I met with a CPA last week and was asked to get the records. But I have 10,000+ transactions. I plugged some the wallet addresses into cointracker and it gave me a capital gains number. Let me just say I lost... alot. I dont want to pay the huge fee to use cointracker unlimited features.

Any advice on how to handle this. I don't know exactly what they are looking for. Could I just skip the decentralized BS I did and not report the loss? Just report the exchanges 1099. Otherwise what do I need to provide if I have to gather the decentralized stuff for memecoins? I wanna present as clean as possible, but also will forgo the extra BS and just give the IRS enough to be compliant. Im debating doin it myself if I can just submit basic 1099 tax information and not go into detail of my degen stuff.

what do you think about it our govt make some change according to your expectations what change will happen in future and how it shape the crypto futures trading in india?

I started looking into the AscendEX shutdown because I work in crypto tax / forensic blockchain accounting.

Honestly, the more I dug, the worse the timeline looked.

AscendEX officially says it ceased operations effective July 1. As of July 6, automated withdrawals are paused and every request is subject to manual review. Their own notice says withdrawals may be delayed, may not be processed during review, and that they cannot give assurances about timing or amounts.

That’s bad enough. But the withdrawal complaints started before the shutdown.

On June 26, ZachXBT publicly asked AscendEX why users were reporting delayed or incomplete withdrawals and why known hot wallets appeared to lack liquid assets. He flat out warned people not to deposit funds to the exchange. Multiple users were already publicly reporting withdrawals stuck for days or weeks.

And looking through the public complaints on X, I found users claiming:
withdrawals stuck in “reviewing,” “initiating,” or “waiting for confirmation”
withdrawals with no TXID ever generated
support tickets going unanswered
accounts showing balances while users say they cannot withdraw
404 errors when trying to access parts of the platform
one user alleging they were placed into a “phased settlement process,” had a 1,000 USDT withdrawal approved, and later saw it marked “refunded” with no TXID
that same user also alleges AscendEX pressured them to remove public posts before continuing an account review

To be completely clear: those last claims are user allegations and I have not independently verified them. I’m not calling AscendEX a scam based on screenshots alone.

But when you combine weeks of public withdrawal complaints with ZachXBT raising liquidity concerns, followed by the exchange shutting down days later, it raises some pretty serious questions.

And AscendEX’s own shutdown notice adds another important detail:
They say they had relied on an agreed strategic transaction that was supposed to provide liquidity, but the counterparty did not perform. AscendEX now says it is assessing its financial position and considering what options may be available for account holders. The notice even acknowledges that unresolved balances could eventually become subject to a formal insolvency or similar process.
So for anyone with funds stuck there, this may be far from over.

The tax side could become a mess too
This is the part I originally started researching.
AscendEX itself is telling users to download transaction history for tax reporting. The problem is that some users are already reporting access issues, and once an exchange disappears completely, reconstructing years of activity can become brutal. AscendEX’s official notice says transaction-history exports are only expected to remain available subject to platform availability and possible legal or insolvency constraints.

And then there’s another question:
What happens tax-wise if users never get all of their funds back?
That answer could depend heavily on what happens next.

If AscendEX enters some type of formal bankruptcy or insolvency process, users could potentially end up with claims, partial distributions, fiat payouts, in-kind crypto recoveries, or distributions spread across multiple years. Anyone who has dealt with Celsius, BlockFi, Voyager, or FTX knows how complicated that can get from a cost-basis and tax perspective. If users ultimately recover nothing, or only part of what they are owed, there may also be potential loss treatment depending on the facts. And yes, theft-loss treatment could potentially become relevant if the facts ultimately establish actual theft or criminal fraud under applicable law.

But this is important:
Being unable to withdraw today does not automatically mean you can claim a theft loss.
The IRS generally looks at whether there was qualifying theft under applicable law and whether there is still a reasonable prospect of recovery. Timing matters too: the IRS says a theft loss generally cannot be deducted while there remains a reasonable prospect of reimbursement or recovery.
So I would not be rushing to put a “theft loss” on a 2026 tax return just because a withdrawal is currently frozen.
But if this turns into a formal insolvency, confirmed fraud case, or users ultimately receive little to nothing back, the tax treatment could become a very real issue.

For anyone affected, I’d be documenting everything now if possible :

•transaction history
•deposits and withdrawals
•trade history
•staking and rewards
•emails with support
•withdrawal requests
•ticket numbers
•balances
•failed transaction records
•any TXIDs you do have
•screenshots showing withdrawal status
•all communications about future payouts or claims
Not just because you may need it to fight for your assets.

You may also need it years from now to prove basis, ownership, amounts lost, amounts recovered, etc.
I originally thought this was just another exchange winding down. After looking at the timeline, the user complaints, ZachXBT’s warning, and AscendEX’s own language around liquidity and possible insolvency… I’m not so sure.

Anyone here actually have funds stuck on AscendEX? What is your withdrawal showing right now?

Sources:
AscendEX official shutdown notice:
https://ascendex.com/
ZachXBT’s June 26 post on withdrawal delays and hot-wallet liquidity:
https://x.com/zachxbt/status/2070405423002448040?s=46&t=BUt3UT6mhxyN4SMNI1ok6Q

Hi everyone,

I’m having a major issue with SwissBorg’s CSV export. The file mixes internal operations (thematic rebalancing, bundle reallocations, internal token movements) together with real user‑initiated trades (actual buys, sells, swaps, deposits, withdrawals).

For tax reporting, only real user transactions matter, but the CSV doesn’t separate them, and the notifications inside the app are incomplete and not exportable.

Has anyone found a reliable way to extract only the real user transactions from SwissBorg for tax purposes?
Or any workaround that makes the data usable in Koinly / CoinTracker / CryptoTaxCalculator

Thanks.

With the ITR filing season in full swing, we're seeing the same handful of mistakes come up again and again in crypto tax filings. Sharing them here in case it saves someone a notice or a revised return later.

1. Netting off losses across VDAs:
You can't set off a loss on one crypto asset against a gain on another. Each VDA transaction is taxed individually at 30% on gains; losses can't offset gains, even within the same token or financial year, and definitely can't be carried forward.

2. Deducting expenses beyond the cost of acquisition
No deductions are allowed for transfer fees, gas fees, or platform charges. The only thing you can subtract from the sale value is the cost of acquisition. Nothing else, no matter how directly related to the trade.

3. Treating crypto Futures/F&O like spot VDA trades
This is a big one. Crypto futures and derivatives are not taxed under the flat 30% VDA regime; they're treated as speculative business income (or non-speculative, depending on structure) and taxed at slab rates. This income is reported under the business income schedule in ITR-3, not under Schedule VDA. Mixing the two up is one of the most common and costly mistakes we see, since it changes both your tax rate and your set-off rules (F&O losses can typically be set off against profits, unlike VDA losses).

4. Reporting VDA income in the wrong schedule
VDA gains go in Schedule VDA, not under "Income from Other Sources" or capital gains. This applies even if the transaction resembles a regular capital asset sale.

5. Ignoring 194S TDS mismatches
If your 26AS/AIS shows a different TDS amount than what you've calculated, don't ignore it. It usually means a sync or reporting mismatch with the exchange side, and it's worth reconciling before filing, not after.

6. Filing with an outdated transaction sync
If you're using any tax tool, make sure your latest transactions from all exchanges are pulled in before generating the report. An outdated sync is one of the most common (and avoidable) reasons for filing errors.

7. Treating P2P/foreign crypto receipts as straightforward
If you're receiving crypto from a foreign client or through P2P, there are FEMA/remittance considerations beyond just income tax. Don't treat this as "just another VDA transaction." It often needs a separate compliance check.

8. Choosing the wrong ITR form
If your only source of income is VDA-linked business/professional income, presumptive taxation (ITR-4) usually isn't the right fit; ITR-3 is typically required, since Schedule VDA requires a detailed books-of-account structure.

Happy to answer specific questions in the comments. We're the team behind KoinX (a crypto tax tool), so if any of this applies to your situation, feel free to ask, and we'll try to point you in the right direction.

# Crypto Tax in India: The Part Most People Get Wrong 🇮🇳

Most people think crypto tax in India is simple: "30% on profit, done."

It's not. And the gap between what people *think* the rule is and what Section 115BBH and Section 194S actually say is exactly why the Income Tax Department has been sending out notices. Let's break it down simply.

## 1. The flat 30% rule — and why it's not what you think

Profit from any Virtual Digital Asset (VDA) — crypto, NFTs, tokens — is taxed at a flat **30% + 4% cess (effective ~31.2%)**, under Section 115BBH. No slab rates. No benefit for long-term holding. No deduction for internet, brokerage, exchange fees, or electricity — **only your original purchase cost can be subtracted from your sale value.**

## 2. The "no netting" trap (this is the one that shocks people)

Tax is calculated **transaction-wise**, not on your overall net position. Losses on one trade **cannot** be adjusted against gains on another — not even against gains on a different crypto. And they can't be carried forward to next year either.

**Example:**

- Transaction 1: Profit ₹40,000

- Transaction 2: Loss ₹50,000

- Net position: Loss of ₹10,000

You'd assume no tax is due since you're down overall. Wrong. You still owe tax on the ₹40,000 profit:

₹40,000 × 30% = ₹12,000, plus 4% cess (₹480) = **₹12,480 payable** — even though your portfolio lost money overall. The ₹50,000 loss simply disappears for tax purposes.

## 3. Mined crypto and airdrops: taxed twice, in two different ways

If you mine crypto, receive an airdrop, or earn staking rewards, it's a two-stage tax event:

- **On receipt:** the fair market value (FMV) of the crypto on that day is taxed as regular income (business income for mining, "income from other sources" for most airdrops) at your **slab rate**.

- **On sale:** that same FMV becomes your cost of acquisition, and any gain above it is taxed at the flat **30% VDA rate**.

So if you mined crypto worth ₹50,000 (taxed at slab rate then) and later sold it for ₹80,000, you pay 30% on the ₹30,000 gain at sale — on top of the tax already paid at receipt. Mining/electricity costs are never deductible.

## 4. The 1% TDS trap — this is what's actually triggering notices

Under Section 194S, **1% TDS** must be deducted on the transaction value whenever a VDA is transferred, once you cross ₹50,000/year (₹10,000/year for non-specified persons).

- On registered exchanges, the exchange deducts and deposits this automatically.

- **On P2P trades, the buyer is responsible for deducting and depositing the TDS themselves** (against the seller's PAN) — and this is exactly what most retail buyers don't know. Missing this attracts interest, a penalty equal to the TDS amount, and in serious cases prosecution.

## 5. Where this all gets disclosed

All VDA transactions must be reported **transaction-wise** under **Schedule VDA** in ITR-2 (if treated as capital gains) or ITR-3 (if treated as business income) — with acquisition date, transfer date, cost, consideration, and resulting income for each transaction. From FY 2025-26 onward, reporting requirements have tightened further, and exchanges are required to furnish transaction statements directly to the tax department.

**Quick note:** gifted crypto is taxable in the recipient's hands (as income from other sources) if the total value from non-relatives exceeds ₹50,000/year — gifts from close relatives are exempt.

---

This is general awareness content, not advice for a specific situation — actual tax treatment can vary based on how you're using crypto (investor vs. trader) and your overall transaction history.

Went to check something on an old exchange account the other week, one I'd used a fair bit years ago, and the site just wasn't there anymore. Gone. No login, no export, no CSV. My whole history on that platform, the buys, the prices I paid, all of it, just no longer reachable.

Nothing bad actually happened. I didn't lose funds, it wasn't holding anything. But it hit me harder than any warning ever had. The records I'd need to prove my cost basis one day were sitting on a platform that could disappear without asking me first, and a chunk of them just had.

That was the thing that finally made me export everything, from every exchange and wallet I'd ever touched, and stick it somewhere I actually control. Not to do my return. Just so the evidence still exists when I need it.

What gets me is that almost nobody does this while things are calm, even though calm is the cheapest and easiest time to do it. The trigger is nearly always something bad, or nearly bad. A letter. A big sale that suddenly made the money feel real. A mate getting a nasty surprise. We seem wired to need the fright first.

So what was yours? A letter, a sale, a near miss, an exchange that vanished, or are you one of the rare ones who sorted it before anything forced you to?