RECEIPTS ON TRANSFER OF VIRTUAL DIGITAL ASSETS U/S 194S

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This discussion clarifies the tax treatment of receipts from Virtual Digital Assets (VDAs) under Section 194S. It addresses whether such receipts should be treated as business income or income from other sources, especially when the client is a contractor with limited transactions. The advice suggests reporting VDA transactions in Schedule VDA of ITR 3, and notes that discrepancies between AIS reports and computation can be resolved by reporting based on your verified computation.

raghavendra b

raghavendra b (Querist)
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17 July 2024 DEAR SIR,

RECEIPTS FROM VIRTUAL DIGITAL ASSETS U/S 194S IS BUSINESS INCOME OR OTHER SOURCE OF INCOME BECAUSE MY CLIENT IS DOING CONTRACTOR ONLY RS 9478/- SHOWING IN 26AS AS WELL AS IN AIS REPORT WHEATHER IT SHOULD BE CONSIDER BUSINESS RECEIPT OR NOT NOW MY CLIENT IS STOP TO DOING THIS.

REGARDS

THANK YOU

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2024 Depending upon number of transactions it can be declared as business income or under Capital Gain head.

raghavendra b

raghavendra b (Querist)
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17 July 2024 THANK YOU SIR,

HOW TRANSACTION REQUIRED TO BE DECLARED UNDER BUSINESS INCOME

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2024 Fill Schedule VDA of ITR 3.

https://www.livemint.com/money/personal-finance/itr-filing-how-to-report-crypto-income-in-income-tax-return-after-addition-of-new-vda-schedule-11698478191479.html

raghavendra b

raghavendra b (Querist)
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17 July 2024 THANK YOU SIR,

MY CLIENT DID NOT PROVIDE FULL DETAILS OF TRANSACTIONS HE SAID THERE IS INFORMATION REGARDING BUY AND SELL ONLY INVESTMENTS. IN THE AIS REPORT ONLY SHOWING RECEPITS HEAD.

THANK YOU SIR

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2024 Get transaction statement of the broker.

raghavendra b

raghavendra b (Querist)
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17 July 2024 THANK YOU SIR,

WHILE COMPARE TO AIS REPORT AND COMPUTATION SHORT TERM CAPITAL GAIN SHOW DIFFRENCES MEANS AS PER AIS REPORT RS 39026/- STG BUT OUR COMPUTATION SHOWING RS 43854/- .

AFTER CROSS VERFYING BOTH 150 SHARES MADE IT BUY AND SELL THAT PARTICULAR ACCOUNT IS NOW INACTIVE IN THE AIS REPORT THAT TRANSACTION NOT TAKEN IN ACCOUNT SO SAME DIFFERENCE IS SHOWING WHILE COMPARE TO COMPUTATION AND AIS.

IS THERE ANY PROBLEM IF I REPORT AS PER COMPUTATION

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2024 No problem if you report in ITR, any transaction in addition to that reported in AIS.

raghavendra b

raghavendra b (Querist)
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17 July 2024 THANK YOU SIR YOUR ALL QUICK REPLY

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 July 2024 You are welcome.

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