Latest ITR forms have new section for cryptocurrency income: These details will be needed when filing enter the amount etc. to be filled in by a person who is in receipt of amounts) for transfer of VDA
There will be a separate schedule for reporting income from virtual digital assets (VDA) such as cryptocurrency in income tax return (ITR) forms for individuals for Assessment Year 2023-24 (Financial Year 2022-23). The Central Board of Direct Taxes (CBDT) notified ITR forms 1-6, ITR-V (verification form) and ITR acknowledgement form for AY 2023-24 through a notification on February 10, 2023.Introduction of this new schedule follows the introduction of a new tax on income from virtual digital assets (VDAs) in Budget 2022. So those earning income or gains from VDAs should now be prepared with all the details that this schedule requires.
The new schedule for VDA requires details like date of acquisition, date of transfer head under which income to be taxed (capital Gain), cost of acquisition (in case of gift; a. enter the amount etc. to be filled in by a person who is in receipt of amounts) for transfer of VDA.
Budget 2022 announced that any income from transfer of any virtual digital asset is taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition, it added.
Commenting on the separate schedule for VDA, Aarti Raote, Partner Deloitte India, "The new ITR 1 and 2 forms notified by the CBDT are broadly similar to that of the previous year with some additional details required to be filed in for VDA assets. There is a separate schedule for VDA that requires details like date of acquisition, date of transfer head under which income to be taxed (Capital Gain), cost of acquisition (In case of gift; a. Enter the amount etc to be filled in by a person who is in receipt of amounts) for transfer of VDA. Other minor tweaks are in general info section and TCS section," said Aarti Raote, Partner Deloitte India.
Saraswathi Kasturirangan, Partner Deloitte India, said, "A separate “Schedule – VDA” has been added to report income from virtual digital asset such as crypto currency. Tax provisions for taxation of VDAs was introduced from FY 2022-23 hence the addition of new schedule is in line with the expectation.
Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!
This story originally appeared on: India Times - Author:Faqs of Insurances
