This blog provides a comprehensive guide to the taxation of Virtual Digital Assets (VDAs) and cryptocurrencies in India for the Financial Year 2025-26. It details the prevailing rules, including the flat 30% tax on all profits, the stringent policy of no loss set-off or carry forward, and the mandatory 1% TDS on transactions. The article also covers the tax implications for gifts, airdrops, and staking, along with the mandatory ITR filing requirements, to help Indian investors and traders navigate the tax landscape and ensure full compliance.

India's digital asset taxation is maturing. For FY 2025-26, the core 30% tax and 1% TDS on VDAs remain, but expect a wider definition of VDAs and mandatory reporting by exchanges. This blog details current rules and what enhanced compliance means for crypto and other new-age investors.

This guide makes it easier to choose the right Income Tax Return (ITR) form for Assessment Year (AY) 2025-26 (Financial Year 2024-25). It explains each ITR form (ITR-1 Sahaj, ITR-2, ITR-3, ITR-4 Sugam, ITR-5, ITR-6, ITR-7) by outlining who can use each one, who cannot, and the specific income sources or taxpayer categories they cover. The guide also notes important updates for AY 2025-26, including the inclusion of certain LTCG in ITR-1 and ITR-4, changes in VDA reporting, updated capital gains segregation, higher thresholds for asset and liability reporting, and required deduction disclosures. The purpose is to help individuals and entities choose the right form for accurate and compliant tax filing.

The Indian government has established a clear framework for the taxation of Virtual Digital Assets (VDAs) under the Finance Act 2022. This comprehensive guide covers the flat 30% tax on VDA gains, the 1% TDS on transactions, strict rules regarding loss set-off and carry forward, and other taxable scenarios like mining, staking, and gifts. It also provides a step-by-step approach to filing crypto taxes in India, emphasizing the importance of detailed record-keeping and professional assistance to ensure compliance and avoid penalties.

This blog outlines the key changes to Form 3CD (Tax Audit Report) implemented by CBDT Notification 23/2025, which takes effect from Assessment Year 2025-26. It discusses possible updates in reporting related to MSME payments, Virtual Digital Assets (VDAs), concessional tax regimes, and depreciation, as well as the necessary steps for both taxpayers and auditors.