How to report a crypto swap in Schedule VDA
Swapped ETH for USDT or one token for another? How crypto-to-crypto swaps are taxed in India, how to value them in rupees and enter them in Schedule VDA.
- Checked against the rules: Jun 2026
- Sources cited · No buy or sell calls
- Tax year 2026–27
Many Indian investors assume tax applies only when crypto is converted to rupees. It doesn't. Every swap from one coin into another counts as a transfer of the first coin, so it has to be reported.
Why a swap is taxable
India taxes the transfer of a virtual digital asset. When you swap ETH for USDT, you've transferred your ETH and received USDT as payment. Any rise in ETH's value since you bought it is a gain, taxed at 30% plus cess. See the complete crypto tax guide.
Valuing a swap in rupees
For each swap, you need two numbers:
- Cost of acquisition: what you originally paid, in rupees, for the coin you gave up.
- Consideration received: the rupee value of the coin you received, at the time of the swap.
Use a consistent, documented price source, such as the INR price on a major Indian exchange at the time of the trade, or a USD price converted at a reference rate. Save screenshots or exports for large swaps.
A worked example
You bought 1 ETH for ₹2,00,000. Months later, you swap it for 3,000 USDT, worth ₹2,70,000 at that moment.
| Schedule VDA field | Entry |
|---|---|
| Date of acquisition | The date you bought the ETH |
| Date of transfer | The date of the swap |
| Cost of acquisition | ₹2,00,000 |
| Consideration received | ₹2,70,000 |
| Income from transfer | ₹70,000 |
Tax on ₹70,000 at 30% plus 4% cess is ₹21,840. Your 3,000 USDT now has a cost of ₹2,70,000. When you later sell that USDT, the gain is measured from ₹2,70,000. You can check your numbers with the crypto tax calculator.
Swaps that make a loss
If the coin you gave up was worth less than you paid, enter zero as the income. That loss can't be set off against anything. See crypto losses in India.
TDS on swaps
On an Indian exchange, 1% TDS is usually deducted on a crypto-to-crypto trade, often in the coin you receive, with the exchange depositing the rupee equivalent against your PAN. It should appear in your AIS. On decentralised exchanges there is normally no TDS, but the tax is still due. See crypto TDS explained.
Many swaps? Keep it manageable
Active traders and DeFi users can have hundreds of swaps a year. Use crypto tax software that imports exchange and wallet data, check its prices against a reliable source, and upload the result to Schedule VDA in bulk. More on DeFi in staking and DeFi income tax.
Frequently asked questions
Is swapping between stablecoins taxable?
Yes, in principle. USDT to USDC is a transfer of USDT. Gains are usually tiny, but it is still reportable.
Is moving coins between my own wallets a swap?
No. A transfer between wallets you own isn't a sale. Wrapping a coin, for example ETH into WETH, is less clear; many professionals treat it as non-taxable, but take advice if the amounts are large.
Does TDS apply to swaps on a decentralised exchange?
In principle, the TDS rules apply to the person paying for a VDA, but on a DEX your counterparty is a smart contract or an anonymous pool, so no one deducts it in practice. That doesn't remove the 30% tax on any gain. Report the swap in Schedule VDA and pay the tax yourself, possibly as advance tax.
Which date's price should I use?
The price at the time of the swap. Daily closing prices are a common, defensible approximation if you can't get the exact time.
Is swapping one crypto for another taxable?
Yes. A swap is a transfer of one VDA for another, so any gain on the coin you gave up is taxed at 30% plus cess.
Is moving crypto between my own wallets taxable?
No. Moving crypto between accounts you own isn't a transfer to someone else. Keep records showing both are yours.
Sources
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