Crypto Tax Query for Indian Freelancers (ITR-4): USDT Payments via WazirX – Same-Day Sell & Bank Transfer, Total Income ~₹10 Lakh, No Purchase Involve

[avishake]

Hi everyone,


I’m a freelancer based in India and some of my clients pay me directly in crypto (USDT). I have a WazirX account. The moment USDT hits my wallet, I sell it the same day at the prevailing rate and transfer the full INR amount straight to my bank account. No holding, no trading, no buying of any crypto.


I file my returns using ITR-4 (presumptive taxation). My total receipts this year are around ₹10 lakh – ₹5 lakh from these crypto payments + ₹5 lakh from normal online bank transfers. This is well below ₹12 lakh.


My main doubts are:

1. How is the crypto amount taxed? Since I’m not purchasing any crypto and only receiving it as payment for services, what is considered my “cost of acquisition” or “profit”?
2. Do I still have to pay tax on the ₹5 lakh crypto portion even though my total income is under the basic exemption threshold?
3. Is the entire amount treated as Virtual Digital Asset (VDA) income at flat 30% under Section 115BBH, or can it be clubbed as regular freelance/professional income under ITR-4?
4. Any special reporting required in Schedule VDA or elsewhere?

I’m genuinely confused because I don’t have any purchase invoices for the crypto. Would really appreciate any clarity, personal experiences, CA suggestions, or links to relevant CBDT circulars/Income Tax portal guidelines.


Thanks in advance!