Crypto reporting deadline looms
Indian crypto investors face a March 31 deadline to report Virtual Digital Asset (VDA) income and are being advised on correct ITR forms, TDS tracking, and tools from CoinDCX and Mudrex to prepare filings. (cnbctv18.com) (telanganatoday.com)
Section 115BBH — the special VDA tax provision inserted by the Finance Act, 2022 — taxes income from transfer of any Virtual Digital Asset at a flat 30% rate with effect from April 1, 2023. (incometaxindia.gov.in). (incometaxindia.gov.in) Section 194S mandates 1% TDS on VDA transfers and applies when aggregate transactions exceed ₹10,000 in a financial year for most payees and ₹50,000 for specified persons, with TDS to be deposited and reported via Form 26Q/26QE within statutory timelines. (cleartax.in). (cleartax.in) The CBDT has updated Income‑Tax Rules and ITR layouts for 2026, creating a dedicated “Schedule VDA” that requires line‑by‑line disclosure (date of acquisition, transfer, cost and gain) and the new rules take effect from April 1, 2026. (weandgst.in). (weandgst.in) Tax authorities and exchanges warn that 1% TDS entries will show up in Form 26AS/AIS and mismatches between exchange TDS records and tax statements are a primary source of notices to taxpayers. (cnbctv18.com). (cnbctv18.com) Exchanges and tax‑software firms have built integrations: CoinDCX and CoinTracker/KoinX offer one‑click trade imports and VDA‑compliant reports, while Mudrex has partnered with KoinX and works with ClearTax/Koinly pathways to generate audit‑ready tax statements. (blog.coindcx.com). (blog.coindcx.com) The revised ITR validation rules now require consistency between Schedule VDA and business/profit schedules (e.g., Schedule BP in ITR‑3), and CBDT guidance and FAQs issued in March 2026 emphasize penalty exposure for inaccurate disclosures. (caclubindia.com). (caclubindia.com)
