As the government begins taxing gains from cryptocurrencies and non-fungible tokens from April the Indian tax authorities may tell banks and crypto exchanges to report transactions of virtual digital assets (VDAs). So far, the tax department has relied on voluntary disclosures on transactions of VDAs.
Once implemented, the sale and purchase of digital assets will reflect in the Annual Information Statement (AIS).
The move will ensure that the details about VDA-related transactions are available with the authorities on a real-time basis, and there would be lower chances of revenue leakage or their going unexamined.
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