Crypto Transaction Details Must

VIRTUAL ASSETS

- ENS ECONOMIC BUREAU @Mumbai

VIRTUAL digital assets (VDAs) such as crypto will be included in defining undisclosed income. This means transaction details should be furnished mandatorily.

Finance minister Nirmala Sitharaman proposed amendments in provisions of Block assessment for search and requisition cases. "It is proposed to add the term virtual digital asset to the said definition of undisclosed income of the block period. The time-limit for completion of block assessment is proposed to be made as twelve months from end of the quarter in which the last of the authorisations for search or requisition has been executed," she said. This move ensures greater oversight as any entity that deals with crypto assets needs to furnish details of transactions. Sumit Gupta, co-founder, CoinDCX said there are some provisions aimed at achieving individual tax compliance for VDA investors, which will likely lead to more compliance burdens on domestic exchanges that are already adhering to the regulations.

Sitharaman also proposed to provide transfer pricing provisions for arm's length price determination in relation to similar transactions to be applicable for a period of 3 years. This transfer pricing rationalisation to benefit Global Capability Centres (GCCs) and MNC service providers.