As the deadline for Income Tax (IT) returns approaches on September 15, crypto investors need to ensure that they file their gains accurately. Following the recognition of Virtual Digital Assets (VDAs) in the Union Budget 2022 under Section 115BBH, gains from cryptocurrencies are taxed at a flat rate of 30% plus cess, with no allowance for loss offsets. Moreover, a 1% Tax Deducted at Source (TDS) on transactions exceeding ₹10,000 is required. Starting from the fiscal year 2025-26, it will be mandatory to declare crypto assets in IT filings. Experts emphasize the importance of compliance, warning that failure to disclose could lead to penalties.
While the industry is advocating for tax relief, ensuring accurate filing is crucial for the financial security of investors.