Tax filing 2026: Missed crypto income in ITR? Why investors could receive an Income Tax notice

“Most crypto exchanges operating in India deduct TDS under Section 194S and report that data independently of your ITR,” Agarwal told Business Today. If an ITR shows no crypto income while an exchange has reported TDS against the taxpayer’s PAN, the mismatch can immediately flag a gap in the taxpayer’s reporting.

“The department already has the transaction on record before you file anything. Your ITR not reflecting it is what draws attention, not the transaction itself,” he added.

What should investors do if they missed reporting crypto income?

Investors who discover that they completely omitted crypto income from their ITR should first establish the correct amount of income rather than attempting to estimate it.

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Agarwal advised investors to collect transaction histories from every crypto exchange they used during the relevant financial year and calculate gains under Section 115BBH. Depending on the applicable filing window, taxpayers should then file a belated or revised return.

Importantly, simply paying the tax does not resolve an omission in the ITR. “The return itself has to show the income,” Agarwal said, adding that investors should not ignore an omission merely because the amount involved is small.