The Income Tax Department announced Income Tax Return forms (ITR 1-6) and Income Tax verification forms (ITR V) for the assessment year 2023-24 with a separate section for crypto and virtual digital assets (VDA) income.
The date of acquisition, date of transfer, and head under which income (Capital Gain) is to be taxed are among the information crypto users must submit. If the user got crypto or VDA as a gift, they must describe the amount of tax that was paid to transfer the asset.
The new section follows the government’s announcement in Budget 2022 of a 30% crypto profit tax and 1% TDS. Despite the anticipation of the crypto community for a reduction in the crypto tax, the Indian Budget 2023 left the 30% tax rate unchanged.