Quick Summary
Obligation to furnish information in respect of crypto-asset Vide Finance Act 2022, taxation of virtual digital assets (VDA) has been introduced in theIncome-tax Act, 1961 (the Act), under section 115BBH of the Act in which the transfer of VDA is tobe taxed at the rate of 30% with no deduction in respect of expenditure (other than cost of acquisition)to be allowed. To define VDA, Clause (47A) was inserted in section 2 of the Act. Further, to captureVDA transaction details, section 194S has been
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1 Year PLAN
1999
(Excl. of GST ₹359)
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2 Years PLAN
3499
(Excl. of GST ₹629)
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999
(Excl. of GST ₹179)
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FAQ :
The new reporting norms for crypto-assets will be effective from April 1, 2026.
Section 285BAA introduces an obligation for prescribed reporting entities to furnish information regarding crypto-asset transactions.
The definition of VDA now includes any crypto-asset that is a digital representation of value, relying on cryptographically secured distributed ledger or similar technology to validate and secure transactions.
If a statement is found to be defective, the reporting entity will be notified and given 30 days (or an extended period) to rectify the defect. Failure to do so will result in the statement being treated as inaccurate.
The transfer of VDAs is taxed at a rate of 30%, with no deductions allowed except for the cost of acquisition.
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