From April 1, 2022, gains made from transactions in virtual digital assets attract tax. Further, from July 1, transactions in assets such as cryptocurrency and non-fungible tokens exceeding Rs 10,000 attract tax deducted at source of 1 percent.

“These changes have been incorporated in ITRs, wherein in ITR2/ITR3/ITR5/ITR6 there is a separate VDA schedule to disclose income from virtual digital assets,” said Jalan.

Under the new schedule, information related to VDA transactions needs to be filled.

“For the purpose of determining tax implications, taxpayers are required to provide date of acquisition and transfer, head under which income to be taxed, cost of acquisition, consideration received and income from transfer of VDA,” said Suresh Surana, founder of RSM India. “In case of gift, one needs to enter the amount on which tax is paid u/s 56(2)(x), if any, and in any other case, cost to the previous owner.”

Those trading in the equity market may need to make additional disclosures.

“Now, where share trading business is done, the entire trading has to be bifurcated into intra-day trading and delivery-based trading also and reported accordingly in ITR3/ITR5/ITR6,” said Jalan.

Tax regime

Besides, forms have been amended to include additional questions related to the selection of the new tax regime.

“The form requires the taxpayer to report whether the filer opted for the new regime in the last assessment year and also select the assessment year in which it was opted. Additionally, another question has been inserted asking whether taxpayers have opted out of the new regime in any of the previous years and is also expecting the taxpayer to mention the 10IE details for both selections,” said Archit Gupta, founder of Clear, a finance platform.