The latest income tax forms released by the Central Board of Direct Taxes have a separate section for Virtual Digital Assets
Last year, the Indian government declared that all the profits from the trading of VDAs would be taxable by 30 percent
Last year, when the government taxed cryptocurrency profits by 30%, nobody has ever thought that income tax forms would be amended to incorporate taxes from crypto profits. However, the latest income tax forms released by the Central Board of Direct Taxes have a separate section for Virtual Digital Assets that include cryptocurrencies, project tokens, NFTs, and any other blockchain assets.
The forum has different columns including the date and cost of acquisition, the date of transfer, and the income from the transfer, along with the considerations received. In the form, the user would have to disclose the total capital gains on the transfer of virtual digital assets taxable at the rate of 30%.
VDAs are mentioned five times in the Income Tax Return (ITR) forums, asking for the details of taxpayers’ crypto portfolios. The inclusion of Virtual Digital Assets in the ITR Forums is a welcoming step towards increasing blockchain adoption in the country. This step is also going to be seen as the official hallmark of the legality of cryptocurrency in India.
Last year, the Indian government declared that all the profits from the trading of VDAs would be taxable by 30 percent. This would not be the standalone tax as each crypto transaction would also be taxed 1% per transaction. You can read more about the crypto tax in India here.
The Indian government is working towards building a global consensus on crypto regulation during its G-20 presidency. If attempts by India turn out to be fruitful, we would be able to witness global crypto regulations taking shape during India’s G-20 presidency. Even though it is easier said than done but if it would become a reality, the Indian impact on global crypto regulations would be significant.
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