u/Few-Poetry4855

▲ 2 r/IndiaTax+1 crossposts

Title: Need guidance — Crypto capital gains + gambling winnings (via crypto) in same FY, how to disclose correctly?

Hi all, looking for genuine guidance before I go to a CA, so I know the right questions to ask.

Situation:

**•**	I traded crypto on Binance (spot + P2P) in FY 2026-27. Used a KoinX report — net taxable capital gain works out to \~₹1,200 after losses (which I know can’t be offset).  
**•**	Separately, I moved crypto from Binance → Trust Wallet (self-custody) → an offshore real-money gaming/betting platform, and back. The Trust Wallet instance wasn’t backed up, so I don’t have transaction-level records from the betting platform itself — only the deposit/withdrawal trail visible on Binance’s end (in/out amounts and dates).  
**•**	I’m aware online real-money gaming is now prohibited under the PROG Act (2025/2026 rules). My activity happened during 2026.

Questions:

**1.**	Should the money that flowed through the betting platform be disclosed as “Income from Other Sources” (gambling/betting) rather than clubbed with VDA capital gains, even though it physically moved through crypto?  
**2.**	Since I don’t have platform-level records, is estimating net gain/loss using the Binance deposit/withdrawal trail (in vs out) a reasonable basis for disclosure?  
**3.**	Does the fact that real-money gaming is now restricted under PROGA affect how this should be disclosed for tax purposes, or is that a separate legal question from the tax filing itself?  
**4.**	Any recommendations on what documentation I should preserve going forward, given the wallet itself is unrecoverable?

Not looking to avoid tax — just want to file this correctly and not have it look like I was trying to hide the source of the income. Any CAs or people who’ve dealt with something similar, genuinely appreciate the guidance.

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u/Few-Poetry4855 — 3 days ago