The initiative promotes India’s ITR-U updated return route as official data shows a wide gap between crypto TDS records and disclosed VDA income.
Mudrex and KoinX have launched Course Correct, a campaign aimed at helping Indian crypto investors fix omitted or incorrect tax filings before the July 31 income tax deadline. The initiative centers on the Updated Return, or ITR-U, mechanism under Section 139(8A) of the Income Tax Act, which lets taxpayers voluntarily revise returns for up to four previous financial years; in the FY 2026-27 filing season, that means amendments can still be made back to FY 2021-22. The companies said many investors mistakenly assumed 1% TDS on crypto trades fully settled their liability, believed crypto-to-crypto trades were not taxable, or failed to report each taxable transaction separately under Schedule VDA. That matters because Indian exchanges report TDS using investors’ PAN, giving the Income Tax Department a clear way to spot mismatches. Official data underscores the compliance gap: 6.45 lakh individuals had TDS deducted on crypto transactions in FY 2022-23, but only 1.39 lakh taxpayers disclosed VDA income. Through the campaign, Mudrex users can send trading history to KoinX to generate consolidated reports across exchanges and wallets, while KoinX will offer expert-assisted filing, including ITR-U submissions. The push also comes before India is expected next year to begin receiving overseas crypto transaction data under the OECD’s Crypto-Asset Reporting Framework, or CARF (global crypto tax reporting standard), and after the Finance Bill, 2026 widened access to ITR-U even for some taxpayers already facing reassessment proceedings under Section 148. The companies argue that correcting returns voluntarily is generally less costly and less burdensome than dealing with notices and penalties later.