Winning Bizness Desk

Mumbai. If you have made profits by investing in virtual digital assets like cryptocurrencies or non-fungible tokens in FY 2022-23, then give this information to the tax department while filing income tax return (ITR). And it is necessary that you declare the correct income from Virtual Digital Asset as well as pay tax on the profit. Otherwise your problems may increase. For the assessment year 2023-24, the Income Tax Department has included Schedule VDA i.e. Virtual Digital Asset in the new ITR Form 2, ITR Form 3, ITR Form 5, 6 and ITR Form No. 7. Taxpayers will have to declare profits from investments in cryptocurrencies or non-fungible tokens while filing income tax returns.

VDA provide all info to department

Remember taxpayers, the tax department has complete information about the profits from cryptocurrency or non-fungible tokens. Virtual digital asset exchanges provide all the information to the tax department. You can view this information by going to the Tax Information Statement (TIS) in the AIS of the Income Tax Return Filing website. Taxpayers have to specify whether the income from VDA asset is to be treated as business income or capital gain. Income from this asset has to be reported.

Do check the tax credit statement

To avoid any mistake in the income declared by you, do check the tax credit statement i.e. Form 26AS once. Apart from this, while filing income tax return, do see the Annual Information Statement. Under 194S, complete information about tax deduction ie TDS is available. In fact, in the financial year 2022-23, from April 1, a tax of 30 percent was imposed on the profits from virtual digital assets. Also, from July 1, 2022, one percent TDS was imposed on every transaction of virtual digital asset so that such investors can be detected who invest in cryptocurrency or non-fungible tokens.