A huge number of people who hold crypto in India have not informed about their crypto transactions and holdings in the ITR for the past two years... FY 2022-23 (AY 2023-24), FY 2023-24 (AY 2024-25)...
So before the tax department imposes penalties on these people... it's offering one chance to rectify the return themselves and give this information at the earliest...
In a Schedule VDA of the Income Tax Form.
There is a chance you may have disclosed it in other incomes or some such for the sake of convenience or without giving it much thought... but please check if you have filled out Schedule VDA!
If not, file a Revised Return through ITR-U...
Clearly, the tax department has information about people's holdings through the data taken from crypto exchanges.
The reason this specific declaration is important because crypto gains are taxed at a flat 30% with no allowability of any expenses other than the cost of acquisition...
And you can't even set off such gains from other losses, nor set of losses from other gains, or carry them forward to other years.
And if you've filed everything correctly, keep a copy of the following because you may get a scrutiny notice regardless of correct reporting if they think you are a high risk person.
1/ Crypto Wallet statements
2/ Trade Ledgers received from the Exchange
3/ TDS certificates received from the Exchange (Form 16A)
4/ Computation of Gains, Losses and Tax thereon
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I could ask ChatGPT to make an image on what a person looks like who has just been caught by the IT Department doing shady transactions…
But then why bother when I can find a depiction in my gallery.
casarthakahuja
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