From April 1, 2022, the profit on transactions in virtual digital assets will be taxed. The Central Board of Direct Taxes had earlier this month notified income tax return forms for assessment year 2023-24.
New Delhi. If you are an income tax payer and apart from job or business, you also earn from Virtual Digital Assets and share market, then you will have to give this information to the Income Tax Department. Due to the provisions included in the Finance Act last year, some changes have been made.
Therefore, from April 1, 2022, tax will be levied on the profit made on transactions in virtual digital assets. The Central Board of Direct Taxes had notified income tax return forms for assessment year 2023-24 earlier this month.
These forms are to be used for filing return for income earned during the financial year 23, which ends on 31st March. “For the convenience of taxpayers and ease of filing, no significant changes have been made in these forms as compared to last year’s ITR forms,” the CBDT said in a statement. Due to amendments in the Income Tax Act, 1961 only the minimum changes required have been made.”
VDA schedule given in ITR
Now information about the tax levied on digital assets will have to be given in the ITR forms. From July 1, 1 percent TDS will be deducted on transactions of more than Rs 10,000 in assets like cryptocurrency and non-fungible tokens. Tax expert Vivek Jalan told Money Control that now ITR2/ITR
3/ITR5/ITR6 separate VDA schedule is given. In this, the earnings from virtual digital assets have to be told. Under the new schedule, information related to VDA transactions will have to be filled.
At the same time, those trading in the equity market i.e. stock market may need to provide additional information. Jalan said, “Now, when share trading business is carried out, the entire business should also be divided into intra-day trading and delivery-based trading and reported accordingly in ITR3/ITR5/ITR6.”
Explain that it was announced in Budget 2022 that the sale / transfer of virtual digital assets
The income from this will come under the tax net of 30 per cent. Also, during the transfer of virtual digital assets, 1 percent TDS will be applicable on transactions exceeding a limit.
