Since the Finance Act 2022, income from the transfer of Virtual Digital Assets is taxed at a flat 30% under Section 115BBH of the Income-tax Act, plus applicable surcharge and cess. The rate applies regardless of your slab, and the only deduction permitted is the cost of acquisition — no trading expenses, no indexation.
The rules are strict: losses on one VDA cannot be set off against gains on another VDA or any other income, and cannot be carried forward to future years. A separate 1% TDS under Section 194S applies on transfers. Getting the computation right — especially across many trades — is where most taxpayers need help.
We compute your 30% VDA tax accurately, reconcile trades across exchanges and wallets, apply the correct cost of acquisition, account for the 1% TDS already deducted, and file the Schedule VDA. We also advise on timing and structuring within the limits of the law.
For active traders and investors, our advisory ensures you pay exactly what is due under Section 115BBH — no more through miscalculation, and no less through error — and stay fully compliant.
Our Strength Lies in Providing Real-World Practical Solutions
We plan every statutory audit around your AGM and ROC deadlines, so Form AOC-4 and MGT-7 are always filed on time. Our team works to a clear schedule and keeps you updated at each stage, so you never miss a statutory due date.
You get a thorough, Standards-compliant audit at transparent, competitive fees with no surprises. Because we deliver statutory audit, tax audit and ROC filing together, you save on duplicated effort and overall cost.
Our experienced team of Chartered Accountants, Company Secretaries and consultants handles the full compliance chain under one roof — statutory audit, tax audit, GST audit, internal financial controls and annual ROC filings — so everything stays coordinated and consistent.
AVS & Associates is a peer-reviewed CA firm founded by CA Vishnu Agrawal, with 25+ years of experience and five partners. We maintain the highest ethical and professional standards on every engagement, with complete client confidentiality.