Do you invest in cryptocurrency? Check these changes in ITR form

New Delhi, Business Desk. Virtual Digital Assets means assets that are used in digital form. These assets are not Indian or foreign currency. Rather digital formats are used. The biggest examples of VDAs at present are cryptocurrencies such as bitcoin, Ethereum, etc. The Income Tax Department has made changes in the ITR form for people earning from crypto and other Virtual Digital Assets (VDA). The tax on cryptocurrencies was announced in the 2022 budget.

At the same time, after this announcement, when the Central Board of Direct Taxes i.e. CBDT released new forms for the Assessment Year 2023-24 i.e. FY 2022-23, a separate section has been kept in these forms for virtual digital assets such as cryptocurrencies.

Do you invest in cryptocurrency? Check these changes in ITR form
Do you invest in cryptocurrency? Check these changes in ITR form

Actually, in this new schedule made for VDA, you will have to tell when you have bought the virtual digital asset when you have sold it, what is the purchase cost and how much profit you have made from its sale. In such a situation, if you have earned from the purchase and sale of VDA in FY 2022-23, then you will have to submit all this information before filing ITR.

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Let us tell you that VDA has been kept in section 2(47) of the Income Tax Act and it includes cryptocurrencies, non-fungible assets, and other virtual digital assets notified by the government. The government announced the imposition of tax on VDA in last year’s budget, because of which these changes have been made in the form for FY 2022-23. All the necessary information will be there from the new schedule brought for VDA.

Those people who would have earned from Virtual Digital Asset will not be able to use ITR 1 and ITR 4.

Let us know which forms have not changed.

No changes have been made for taxpayers filing ITR-1 and ITR-4. Let us tell you that such taxpayers come in ITR-1 whose annual income is up to Rs 50 lakh and they earn from salary, house property, or any other means like interest. On the other hand, such taxpayers are covered in ITR-4 but they also have income from business or profession under sections 44AD, 44ADA, or 44AE of Income Tax.

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