How to report income from cryptocurrencies, NFTs, Virtual Digital Assets (VDA) in ITR form

economictimes.indiatimes.com:

Virtual Digital Assets (VDAs) like cryptocurrencies, non-fungible tokens (NFTs) and any other VDAs notified by the government. The new tax rate for VDA came into effect from the financial year 2022-2023 (Assessment year 2023-24).

As per the new tax rules, the income generated from the sale of cryptocurrencies, VDAs, NFTs, in FY 2022-23 will be subject to a tax rate of 30% and applicable surcharge and cess. It is important to note that you cannot avail deductions for any expenses other than the cost of acquisition when calculating such income. For example, suppose you bought bitcoins in FY 2018-19 for Rs 10,000 and sold it in FY 2022-23 for Rs 50,000. You incurred expenses like brokerage and transaction charges of Rs 5,000 on sale of bitcoins. One needs to calculate the income that will be taxable and reported in the ITR form. The new tax law allows an individual to deduct only the cost of acquisition (Rs 10,000 in the example) to arrive at profits. Hence, as per our example, you will be required to report an income of Rs 40,000 (Rs 50,000 minus Rs 10,000) in your ITR form. Do keep in mind that the deduction related to brokerage and transaction charges are not allowed. The income calculated from the sale of VDA transfers will be subject to tax at a fixed rate of 30% without the benefit of the maximum exemption limit. Further, no tax deductions such as sections 80C, 80D, etc. from the income calculated under this provision will be permitted. However, the resident individual can claim the benefit of a rebate under section 87A of up to Rs 12,500 from the tax computed under this provision if the total income of such an individual does not exceed Rs 5,00,000. Any loss arising from the sale of