New ITR Forms Seek Details on Crypto Income
Information such as income from the transfer of virtual digital assets, date of acquisitions, date of transfer, cost of acquisition in case of a gift, etc, are to be disclosed under a new section for ITR 2023-24
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There is no denying that the concept of cryptocurrencies, blockchain, non-fungible assets, and metaverse is going to be a big part of our daily lives. While the banking and financial sector may show disdain towards cryptocurrency, the government has taken certain measures to encourage a long-lasting ecosystem. While the Union Budget 23-24 did not bring major changes to the workings, much to crypto investors and owners, the new ITR forms for the year 2023-24 have brought a new addition for disclosing one’s earnings from Virtual Digital Assets as long-term capital gains.
The Central Board of Direct Taxes released the income tax return forms for the assessment year(AY) 2023-24, which includes ITR-1 SAHAJ, ITR-2. ITR-3, ITR-4 Sugam, ITR-5, and ITR-6.
Taxpayers who will be filing under ITR-1 SAHAJ and ITR-4 will be relieved as there are no new revisions or changes. Whereas, for the remaining, tax filers will be required to disclose details pertaining to their VDA.
Information such as income from the transfer of virtual digital assets, date of acquisitions, date of transfer, cost of acquisition in case of a gift, etc, are to be disclosed under a new section. The capital gains from such assets will be taxed at a rate of 30 per cent.
The call for taxing VDAs was made during the Union Budget 2022-23 by Finance Minister Nirmala Sitharaman. “There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent,” she said during her speech.
The revised ITR forms now align with the requirement of taxing VDAs.
There is no denying that the concept of cryptocurrencies, blockchain, non-fungible assets, and metaverse is going to be a big part of our daily lives. While the banking and financial sector may show disdain towards cryptocurrency, the government has taken certain measures to encourage a long-lasting ecosystem. While the Union Budget 23-24 did not bring major changes to the workings, much to crypto investors and owners, the new ITR forms for the year 2023-24 have brought a new addition for disclosing one’s earnings from Virtual Digital Assets as long-term capital gains.
The Central Board of Direct Taxes released the income tax return forms for the assessment year(AY) 2023-24, which includes ITR-1 SAHAJ, ITR-2. ITR-3, ITR-4 Sugam, ITR-5, and ITR-6.
Taxpayers who will be filing under ITR-1 SAHAJ and ITR-4 will be relieved as there are no new revisions or changes. Whereas, for the remaining, tax filers will be required to disclose details pertaining to their VDA.
